Rocom boost from new Telecom network

Rocom is opening its subsequent public offer of 3.6 million shares tomorrow, priced at 50 cents per share. The SPO, which is open until February 4th, is to raise capital to finance the company's key transaction purchase of cellular technology dealer Rocom.

MD Steve Borich says the SPO is the first milestone in what will be a very big year for the company.

"This transaction will enable us to acquire Rocom and place us in a strategic position to take advantage of the opportunities presented by the introduction of Telecom New Zealand's new CDMA network in mid-2001."

Mr Borich says Rocom is Telecom's largest accredited dealer of cellular technologies and connections, supplying around 30% of the telco's top corporate customers including Lion Nathan, Air New Zealand and Television New Zealand.

He says the company has specialised in the integration of wireless computing and mobile telephony, and has already begun preparing corporate customers for the rollout of CDMA.

"Rocom is set to be at the forefront of the CDMA roll-out, working with our corporate customers to tailor data-over-mobile solutions to maximise the benefit of these applications to their business.

"As well as providing the cellular handsets and handheld computers, Rocom teams will be involved in solution development, installation, training and after-sales support."

In October last year, Rocom also acquired Mission Control, a New Zealand developer of wireless computing software applications, leading to the establishment of its own wireless computing division.

Rocom Wireless is the first New Capital Market company to raise capital through an SPO. Under the exemptions obtained from the Securities Commission, NCM companies can raise capital from the public without the need for a full prospectus.

Rocom has been independently valued by Grant Thornton Chartered Accountants at between $4.6 million and $6.1 million.

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