Woosh eyes listing despite its red ink

Auckland internet company Woosh Wireless - owned by investors including Todd Capital, Stephen Tindall, Craig Heatley and founder Rod Inglis - has moved a step closer to a sharemarket float.

Investment bank ABN Amro has been appointed to investigate an initial public offering, but Woosh says no final decision has been made.

A source told the Business Herald that a float raising up to $40 million was expected in the third quarter - or later - this year.

One challenge would be floating a company still losing money.

Another issue was the amount to be raised from the public, rather than existing investors.

Investors had put a reported $120 million into the company by February this year. The wireless broadband internet provider evolved out of Walker Wireless, founded by chairman Inglis in 1999.

Woosh disclosed losses for the year to last June 30 of $18.9 million, with operating losses of $13.9 million on sales revenue of $5.9 million.

Inglis said in February that the company was still in spending mode.

"When you're building an infrastructure asset, it's the kind of investment you just simply have to make upfront."

Chief executive Bob Smith said last week that Woosh was on track with its business plan.

Woosh services are available in about 70 per cent of Auckland, more than 10,000 homes and businesses in Southland, and more than 37,000 in Wellington.

In February, the company launched a range of high-speed internet packages, costing between $29.95 and $69.95, aimed at enticing fixed-line, dial-up internet users.

In the previous six months, Woosh doubled its customer base to 10,000 users.

WOOSH WIRELESS

* Offers: Wireless high-speed internet.

* Where: Auckland, Wellington, Christchurch and Invercargill.

* Formerly known as: Walker Wireless.

* Founded: 1999.