Rakon, the Auckland-based maker of the world's smallest GPS receiver, could be valued at around $147 million, figures circulated among potential investors show.
The company, which is considering a flotation on the NZX, was last year seeking offers at 10 to 11 times this year's forecast $14 million March year trading profit.
The figures are understood to be a little out of date, however they provide an indication of the valuation range Rakon expects to achieve should it proceed with its listing early this year.
It is not clear how much debt Rakon expects to carry, so it is difficult to estimate the value it would attract on the sharemarket.
This year's trading profit was expected on sales of $80 million. The company estimated in 2007 sales would rise to about $100 million and trading profits to around $20 million.
Rakon refused to comment on the figures, but reiterated it would make up its mind on whether to proceed with a public offering and flotation before the end of March.
If the company decides to proceed with listing, it will publish more detailed and up-to-date figures, which could differ from those circulated among investors.
Rakon is eyeing the huge potential for the inclusion of its products in the 500 million to 600 million mobile phones and the 70 million to 80 million cars manufactured each year.
But it needs more cash to satisfy the demand.
Rakon was founded by engineer Warren Robinson, 71, in a Howick basement in 1967, and is now run by his sons, Brent, 46, and Darren 44.
Observers said Rakon might appear cheap especially when compared with other technology companies - Fisher & Paykel Healthcare trades at around 16 times trading profit.
But the value could reflect uncertainty about how quickly its products will be adopted by mobile phone and car manufacturers.
Navigation equipment is standard fare in luxury cars such as Mercedes-Benz and BMW and, if history is any guide, it will eventually filter down to the lower end of the market.
Meanwhile, Rakon is dependent on a narrow range of products that could be supplanted by innovation.
Rakon will not say just how much it wants to raise, but it wants to expand its sales and marketing presence and production capacity by 70 per cent.
If all goes well, the plan could mean as many as 30 new jobs at its Mt Wellington headquarters, where it already employs 500 people.
The brothers, who own an 8 per cent stake each in their own names, do not have a preference for private equity over a public offer. But they are determined Rakon should remain independent.
"We certainly are," Brent Robinson told the Business Herald this month.
"We believe we have a bright future ... and there is no point selling out at the beginning of a large growth curve."
The family last year sold a 20 per cent share in the business to Peter Maire, founder and chairman of navigation technology specialist Navman.
He told the Business Herald last year that Rakon was New Zealand's "only real technology company".
"If you talk about real, state-of-the-art technology on a global scale, they're a market leader.
"They beat all of the major Japanese competitors hands-down."
Investors told tech firm Rakon is worth $147m
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