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Vending Machine company launches IPO

By Ben Dutton

Monday 9th October 2000

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'Smart' vending machine operator Vending Technologies Ltd has launched a $7.5 million IPO to help fund an aggressive expansion into the Australasian market.

Established in December 1997, Vending Technologies (VTL) manufactures, sells, maintains and services vending machines which offer a variety of cold and hot products for the consumer. Their own proprietary software enables VTL to monitor the machines stock and performance levels, ensuring that they never run out of products and mechanical problems are promptly dealt with.

The machines are more sophisticated than many other vending machines on the market, costing between $3,000 and $15,000 each.

VTL operated 419 vending machines to the end of March 31st, 2000 and plan to have over 4700 machines throughout Australia and New Zealand within 18 months. The company has already achieved a lucrative contract with the Australian Construction, Forestry, Mining and Energy Union, agreeing to supply them with vending machines in over 350 construction sites.

An experienced board is leading the company, with a notable member being the independent director Liz Coutts, who is also a director of Air New Zealand, Earthquake Commission, Health Funding Authority, and other companies.

VTL Chairman Richard Janes said the Company was confident that its quality management, experienced board and state of the art systems would allow it to meet its challenging growth targets.

With the issue priced at $1 per share, VTL will have a market cap of $29.5 million after the offer. The organising broker for the IPO is Craig & Co. and market sources indicate that there is a high level of interest in the float. However, ordinary punters will have to wait to buy into VTL after the company lists because there is no public pool of shares available.

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