By Nicholas Bryant
Friday 3rd November 2000
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The company supplies and operates electronic food and beverage vending machines throughout Australasia.
A big drawcard for the many retail investors who subscribed to Vending Technologies 7.5 million ordinary shares was its track record. In business for two years, it made a net profit after tax of nearly $800,000 for the year to March 31 and is forecasting after-tax profits of $4.2 million for the 2001 year and $5 million for 2002.
The offer was significantly oversubscribed, "a particularly pleasing response in a flat market," chairman Richard Janes said.
The company offered $2 million worth of existing shares and $5.5 million worth of new shares, leaving a total capitalisation of $29.5 million of fully paid shares when the offer closed. The funds raised will be used for rapid expansion.
The company's prospectus projected an increase in its machines operating from 400 to 2100 before the end of 2001. The company believes it can have 4700 operating in Australasia by 2002. Not surprisingly, expansion beyond its current region is planned.
Another thing that may have drawn investors in is an undertaking by the four major shareholders not to sell any of their 74.6% stake in the company before September 2001.
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