CEO Jan Nel says that its AltX listing will facilitate the financial aspects of its organic- and acquisitive-growth ambitions.
“We intend to continue to grow organically and through acquisitions and we expect that an AltX listing will enhance our ability to do so.”
This growth is likely to either be financed through a capital raising exercise or a share swap.
Zaptronix is involved in all aspects of the electronics and communications industry and designs and supplies energy-management systems for local and global markets.
These systems include power- and utility-monitoring through remote meter reading and load-management services, which result in enhanced efficiency in energy-management for its customers as well as savings in electricity and water use.
Nel tells Engineering News Online that the group's vision is to focus on risk management.
However, its immediate vision is to enhance the divisions it already has in its stable, especially in the energy-management sector.
This is a sector that he believes is not well understood.
So while Eskom focuses on increasing its generation capabilities, and while the Regional Electricity Distributors (Reds) come on line, Zaptronix will be in the middle, helping customers manage the demand side.
Nel explains that its customers are all large organisations that rely on electricity for their final product but have not, as yet, being factoring the cost of electricity into the cost of the finished product, seeing it as an overhead instead.
Companies can no longer afford to take this view, he says.
And this is the space in which he sees short-term opportunities, bridging the gap in managing consumption until the Reds get off the ground.
Once the Reds are off the ground, he anticipates the price of electricity moving upwards as there will now be another link in the provision chain.
The Regional Electricity Distributors will essentially act as 'middle men' in the provision of electricity.
Initially, there were to be six geographically located Reds, but now it seems that other municipalities falling outside of the loop of the initial six will be gathered into a seventh, national Red.
Once these Reds are in play, Zaptronix hopes to have been awarded a contract to handle electricity management on their behalf.
He says that the company is in this tender process, which has been delayed as a result of delays in getting the Reds off the ground.
This expansionary vision is why the company, which is 30% black economic-empowered, sought to upgrade its listed status.
It was initially listed on the JSE's Venture Capital Market, a precursor to AltX.
JSE business development manager Noah Greenhill tells Engineering News Online that the Venture board, as well as a Development Capital Market board, was formed in the 1980s.
However, with the advent of the AltX a few years ago, the JSE considered scrapping these boards, which list about 18 companies in total.
The market's response was an overwhelming 'no', but no further companies were allowed to list on these boards.
However, Zaptronix's shares were mostly static on this board, and in 2003, the company considered delisting.
At that stage, shares were trading at 1 c a share. On Monday, they closed at 13 c a share and the first trade after the move was 100 000 shares at 12 c, just after trading opened at 09:00.
By 11:05, shares - under the code ZPT - were trading at 16 c, a 23% improvement.
Its BEE partner, Royal Bafokeng Capital, acquired 30% of the 379-million shares in issue at 16 c a share, in March.
It has the option to acquire a further 30% over three years if further shares are issued.
Some 18% of the shareholding is held by a company called Gandalf, while the company's directors hold another 10%. The rest is in free float.
The group expects to achieve net income of R1,4-million by the end of August and R2,7-million at the end of August 2007.
This equates to projected growth in earnings and headline earnings per share of around 84% in 2007 over the 2006 financial year.
In its interim results to end February, it reported earnings of R181 000.