Norway’s SafetyCable IPO Likely To Bypass OSE For Nasdaq

sept 19, 2000   //   by admin   //   Ukategorisert  //  No Comments

By Ingrid Williams

07/10/2000 Dow Jones International News (Copyright (c) 2000, Dow Jones & Company, Inc.)

OSLO -(Dow Jones)- SafetyCable AS likely will seek a listing on the Nasdaq rather than on the Oslo Stock Exchange, the Norwegian computer security firm’s chief executive said.

An Oslo listing «can be hard on technology companies in general,» Foseide told Dow Jones Newswires in a recent interview. «Your valuation is very vulnerable in the Norwegian market, since there are just a few companies that dominate and when something happens to them, the whole market is down. (Liquidity) is a problem.»

Analysts are not so convinced a Nasdaq listing is the answer. «Even for Scandinavian companies with only a few hundred millions of dollars in market cap, size can be a complication for such a listing,» one analyst said. «You need to be larger to really attract investors.»

SafetyCable , founded in 1998, trades on Oslo’s gray market, and is currently valued at around 40 million kroner ($1=NOK8.6120). It will seek a public listing in about 18 months, Foseide said.

The gray market consists of trading in the securities of companies that are unlisted, also known as over-the-counter trading.

The company’s first product is a power cord that has both a surge protector and an alarm that is activated by any attempt to unplug the computer. The alarm can be deactivated only by password. So far, the company has distribution and sales only in Scandinavia but expects to enter the U.S. in late 2000 or early 2001.

«We have been advised by several large investment companies that because we have such a unique technology that we should strongly consider a Nasdaq listing,» Foseide said. «Our first product has an international patent and there are patents on all our products.»

He added that U.S. computer equipment distributor, CHS Electronics Inc. (CHSWQ), has «shown an interest in our products.»

An Oslo-based analyst said the problem for fledgling companies in Norway lies not in an actual listing on the OSE, but in the move from the gray market.

«The gray market is exposed to short-term speculation and lots of rumors,» the analyst noted.

«Many companies are destroyed by rumors in the transition. They may have a good technology and a solid platform, but they don’t get time and peace to develop as they should.»

-By Ingrid Williams, Dow Jones Newswires; 47 23 35 70 70; ingrid.williams@dowjones.com

 

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