GDC hopes float remains attractive

By ADAM GIFFORD

Telecommunications and e-commerce infrastructure specialist GDC Communications is hoping New Zealand investors are not put off by the turmoil on the Nasdaq as it prepares for an initial float.

The Auckland company is making an initial public offering of 5,784,000 new ordinary shares at $1.50 a share through a panel of brokers led by Craig & Co.

This will give the company 36 million fully paid ordinary shares, with directors holding about 40 per cent of the fully paid shares on issue.

There are also 1.86 million partly paid ordinary shares, which are being issued to nine senior executives, excluding directors, at 20c a share.

GDC has provisioning contracts to cover all repairs, connections and maintenance for Telecom's Papatoetoe and Christchurch North patches. It also designs, builds and maintains private voice and data communications networks.

For the year ended December 31, 1999, GDC reported an after-tax profit of $3,217,000, up 62 per cent on 1998, on sales of $33.5 million - an increase of 38 per cent over the previous year. GDC is forecasting after-tax profit for the coming year of $4.05 million, up 26 per cent, on revenue of $45 million, up 34 per cent.

Growth so far has been financed from internally generated funds with no new equity funds raised since January 1995. The company has minimal borrowings.