High-flying Telemedia boss eyes Nasdaq instead of NZSE listing

By RICHARD BRADDELL

WELLINGTON - Auckland businessman Chris Jones sees New York's Nasdaq as an option as shares in his Australian-listed Telemedia Networks International continue to surge.

After propelling Mr Jones into the ranks of the seriously rich in a $A16 million ($20.3 million) float of nearly 27 per cent last October, shares in the telecommunications software company he founded three and a half years ago have soared from their $1 issue price, nearly doubling in value in the past month to nudge $6 this week, before retreating to $5.80.

On paper, at least, Mr Jones' 73.2 per cent stake is worth about $320 million.

Mr Jones said the strength of the Telemedia stock undoubtedly owed much to its scarcity, but he added that institutions and private investors were recognising the fundamental value of a telecommunications vendor operating in proven areas rather than the blue sky associated with internet stocks.

Telemedia, which began life in Auckland and still has significant operations here, specialises in enhanced services systems that typically generate around 30 per cent of telco revenue.

Such a system was provided by Telemedia so The Warehouse could capture enhanced service revenues on the cellular business it offers over Telecom's network. Telemedia has sold to countries as far afield as Uzbekistan, Romania and Thailand. Telstra, AAPT and Vodafone are among its customers.

A landmark strategic alliance was signed with Japan's second-largest telecommunications grouping, KDD Network Systems, last month.

While people had suggested he also list in New Zealand, he said a Nasdaq listing was a more attractive option.

David Leslie, an analyst with Hartley Poynton, the organising broker for the October float, said the recent share price jump was in part due to Asian investors attracted by a prestigious alliance with KDD.

He said recent British figures showing unexpectedly strong prepaid cellular growth were positive because of Telemedia's strength in the prepaid area.