ihug plans NZX listing

The company will list 79,461,916 ordinary shares. At today's prices, iiNet will have a market capitalisation of more than $220million.

iiNet is not currently seeking to raise any capital in connection with the listing. Forsyth Barr is acting as organising broker in the compliance listing.

"The decision to list iiNet on the NZSX was a logical step for the company given the number of New Zealand investors who are already substantial security holders of iiNet," iiNet chairman Peter Harley says.

More than 25% of iiNet's issued capital was held by New Zealand investors. "As ihug continues to maintain a strong and growing market presence, especially within New Zealand, we expect that this listing on the NZSX will generate significant investor interest, particularly in view of iiNet's excellent growth, financial performance record and consistent dividend policy."

After posting a record net profit, before goodwill amortisation, of $3.7 million for the 6 months ended December 31, iiNet declared a fully franked interim dividend of 2.5 cents per share.

The future focus is on growing its New Zealand and Australian operations through selective acquisitions of internet service and phone providers where those acquisitions meet iiNet's strict investment parameters.

In parallel, iiNet will exploit enhanced organic growth prospects in the broadband and phone markets.

iiNet is exploring the use of Voice Over Internet Protocol (VOIP) to reduce the cost base of the telephone business in Australia, leveraging the very successful VOIP business in New Zealand.

iiNet is also piloting its own broadband DSL infrastructure. This involves the installation of DSLAMs, a broadband switch, into Telstra's exchanges, reducing the cost base of DSL.

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