Boom sends Rocom on capital search

By Nick Stride

Friday 21st July 2000

Telco equipment supplier Rocom Wireless is seeking a New Capital Market listing to help finance growth opportunities created by the wireless boom.

Rocom was founded in 1987 and last year had revenues of $16 million.

Its headquarters are in Auckand's "Silicon Alley" alongside the Viaduct Basin and it has nine wireless business centres around the country.

It is New Zealand's largest independent cellular and satellite telecommunications equipment dealer with 60,000 customers.

It has agencies for Motorola, Nokia, Uniden, Brother, Psion, Canon, Sharp, and Ericsson equipment.

Founders Richard Guy and Paul Van Dorp bought the company from Singapore's Acma in 1997 and Mr Guy last year took 100% ownership.

He said Rocom needed capital to pursue the opportunities about to be created by second and third-generation cellular technologies in the wake of the current government spectrum auctions.

A prospectus will be distributed early next week by the organising broker, DF Mainland Securities.

Rocom has got out of the fax-equipment business and the consumer market to concentrate on wireless solutions for corporate customers.

The money raised will be used to develop content applications for wireless handsets - that is, advising customers on the right equipment for their voice, data and image needs and writing tailor-made software - and to implement billing solutions for satellite customers.

Managing director Steve Borich said Rocom was looking for the right partners and alliances for its expansion strategy.

He said it had "the biggest slice" of Telecom's top 600 client base. Satellite customers using, for instance, high-bandwidth ISDN equipment included Television New Zealand and TV3, the Army, the Ministry of Foreign Affairs and other government departments, and various utilities such as Transpower.

Mr Guy was keen to emphasise the company was not a dotcom. "We're a growth stock with brand presence and cash flows." NCM's first wave rolls in - page 30

Richard Guy

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