Investor Relations

News
Strategy
Publications
Vtion Shares
Share buy-back program
Ad hoc-Releases
Company Structure
Financial Key Figures
Financial Calendar
Corporate Governance
Directors Dealings
AGM
Delisting Purchase Offer

Investor Relations News

Vtion Wireless Technology specifies price range for planned IPO

  • Price range between EUR 9.50 and EUR 12.00 per share
  • Issue volume of up to EUR 62,1 million 
  • One of the three leading suppliers in China with an estimated market share of 25% in 2008
  • Strong sales growth and sustained net profit margin of more than 25%

 

Frankfurt, 25 September 2009

Vtion Group, one of the three leading suppliers of wireless data card solutions for mobile computing over wide area networks in China, intends to go public on 1 October 2009. Vtion aims to obtain a listing on the Regulated Market (Prime Standard) of the Frankfurt Stock Exchange.

The price range within which purchase offers may be submitted will be EUR 9.50 to EUR 12.00 per share. Assuming a full exercise of the Greenshoe Option, this represents a total issue volume of EUR 49.16 million to EUR 62.10 million. The offer period will begin on 28 September 2009 and is expected to end on 29 September 2009. On the final day of the offer period, private investors can submit purchase offers until 15:00 (CET), while the deadline for institutional investors is 16:00 (CET). Sal. Oppenheim jr. & Cie. KGaA is acting as lead manager Macquarie Capital (Europe) Limited is acting as syndicate bank. comdirect bank AG, DAB Bank AG and S Broker AG & Co. KG are selling agents.

The company is planning a public offering in Germany and Luxembourg as well as private placements in various countries outside the United States. The offering consists of up to 5,175,000 ordinary bearer shares of Vtion Wireless Technology AG. Up to 4,500,000 of these ordinary bearer shares originate from a capital increase and up to 675,000 ordinary bearer shares originate from the holdings of certain existing shareholders in connection with a potential over-allotment. Assuming a full exercise of the Greenshoe Option the free float will amount to 32.4%.


Further expansion planned
The purpose of the proceeds of the issue is mainly to fund further expansion of the Vtion Group. Most of the funds received are to be invested in expansion of the research and development capacities and selective acquisitions to broaden the product range and to take advantage of our excellent relationships with the telecoms operators, while some of the proceeds will go into working capital to finance the growth strategy. A particular objective in the context of our new marketing strategy as a virtual network operator (VNO) in the data field is to implement product packages consisting of a 3G data card and wireless Internet access via retail partners using shop-in-shops. A successful start was already made on this in the province of Fujian in August 2009 on the basis of an agreement with China Telecom. Further, the proceeds of the offering shall be used to acquire licences.

Strong market position in China
The Vtion Group was established in 2002 and has developed into one of the three leading suppliers of wireless data card solutions since then. At the present time, the Vtion Group is one of the first providers of Internet-based data services in the wireless data card field in China. In the context of Internet-based data services, which are targeted mainly at business travellers in China, the Vtion Group offers the members of its business club an Internet accelerator (shortening of website loading times and optimisation of the reliability of Internet connections), a virus scanner, a text messaging service, an electronic fax service, an online translation service and an Internet travel service. These data services are provided to a very large extent by co-operation partners on the basis of appropriate licensing agreements. The Vtion Group business club had 227,376 paying members on 31. August 2009.


3G - the technology for the future
The Chinese mobile phone network industry is currently going through a process of market development from the second mobile phone generation to standards of the third mobile phone generation ("3G standards"). The Vtion Group is expecting completion of the establishment of 3G mobile phone networks to lead to a further increase in demand for wireless data cards in China. The Vtion Group sold 898,885 wireless data cards in the first eight months of the 2009 financial year - already 48% more than in the whole of 2008. The Vtion Group considers itself to be one of the few suppliers of wireless data cards that is able to produce wireless data cards for all 3G standards and all industry relevant interfaces for personal computers and laptops.


Strong growth, high profitability
Vtion generated sales of EUR 39.2 million in the 2008 financial year, following EUR 29.0 million in the previous year - growth of about 35 per cent. Earnings before interest and tax (EBIT) amounted to EUR 12.6 million; this represents an EBIT margin of 32 per cent. The net profit amounted to EUR 12.4 million. In the first eight months of 2009, the Vtion Group reached sales of EUR 38.2 million and a net profit of about EUR 10.0 million. This means that the net profit margin was 26.0%.


About Vtion
The Vtion Group is one of the three leading suppliers of wireless data cards and associated services for the mobile use of computers via broadband wireless networks in the People's Republic of China. The Vtion Group concentrates mainly on the development and sale of wireless data cards, including provision of appropriate after-sales services. The Vtion Group also supplies Internet-based data service solutions. The company has about 150 employees. The Vtion Group generated sales of EUR 39.2 million and a net profit of EUR 12.4 million in 2008.

 

For further information, please contact:

Kirchhoff Consult AG
Dr Kay Baden, tel.: +49 40 60 91 86 0, baden@kirchhoff.de
Janina Wismar, tel.: +49 40 60 91 86 50, janina.wismar@kirchhoff.de
or visit the company website at: www.vtion.de

 

Disclaimer

This publication is not an offer of any securities for sale or a solicitation of an offer to purchase any securities. The offer of shares is only made through and on the basis of the prospectus approved by the Bundesanstalt für Finanzdienstleistungsaufsicht. The prospectus is available on the website of the company on www.vtion.de, a copy can be requested from the company (fax-no. +49-(0) 40 60 91 86 60) and from Sal. Oppenheim (fax-no. +49-(0) 69 71 34 51 69), free of charge.

This document is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares of Vtion Wireless Technology AG (the "Shares") have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the Shares in the United States and the Shares will not be registered under the Securities Act.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The Shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

 

<< back