Finnish internet applications developer Nedecon Network Development Consulting Oy is making an initial public offering prior to a listing on the Helsinki stock exchange, with trading likely to start in early June, according to marketing director Jyrki Eklund.
The company, based in Espoo, just outside the Finnish capital, is offering 490,000 shares, of which 300,000 are new issues. The price of 5 euros ($5.31) each means that the operation will raise 1.5m euros ($1.59m) for the company.
Since the free float will represent 18.1% of Nedecon’s equity, the price set for the IPO gives the company an initial valuation of 8.28m euros ($8.8m). Eklund said the company is offering the shares entirely on the Finnish domestic market, with many being sold directly over the internet.
Nedecon was established in 1994 to develop internet, intranet and wireless application protocol (WAP) products. The company had a net profit of 1.3m Finnish marks ($230,000) on revenue of 16.3m marks ($2.91m) in 1998.
Eklund says the company intends to use the proceeds from the IPO to fund further growth both at home and abroad. Earlier this year, it set up its first subsidiary, choosing Brazil as the location on account of the rapid development of the internet in that country.
