Powerlan today announced its telecommunications group Clarity International will list on the ASX in an effort to raise $3 million of new capital to fuel its growth ambitions.
The offer is expected to open on 28 August, closing on 12 September or earlier with high investor demand, the company said.
Powerlan acquired a 51 per cent stake in Clarity less than 12 months ago for around $1.7 million.
Theo Baker, Powerlan's CEO commented in a statement to the ASX the company is a committed long-term shareholder in Clarity. "We see significant valuation upside for the company in the future."
At the float price of $0.50 per share, Clarity's market capitalisation is $25 million, the company reports. Clarity's prospectus contains revenue expectations of $18.6 million to 30 June 2001, and a post-tax profit of $3.5 million.
Powerlan reports it will retain a 41 per cent shareholding in Clarity after the float, which is underwritten by KTM Capital Pty Limited.
Clarity produces a suite of telecommunication operational support system ("OSS") products for the international telecommunications carrier and service provider markets. Its partners include IBM, Oracle and Usha Communications Technology.