Small investors show confidence in Rocom

By FIONA ROTHERHAM

Small investors have flocked to put money into the latest New Capital Market issue for telco equipment supplier Rocom.

Its public offer of 1.2 million 50c shares closed yesterday heavily oversubscribed.

The Auckland-based company received nearly 500 applications and all will receive at least the minimum $500 worth of shares.

Rocom Wireless will become the fourth company listed on the Stock Exchange's New Capital Market tomorrow.

Of the three firms already listed, Selector Group has moved on to the main board after completing its key transaction. As indicated in the prospectus, Rocom Wireless proposes a subsequent public offering to raise around $2 million to buy Rocom Ltd.

Shareholders of Rocom Wireless will receive preferential allocations under that offer.

Director Richard Guy says an independent valuation of Rocom Wireless will now go ahead before the transaction is put to shareholders in October.

Rocom is New Zealand's largest independent cellular and satellite telecommunications equipment dealer.

It has 60,000 customers and annual revenue of $16 million.

It is owned by family trusts associated with Mr Guy.