Top Story | Wednesday, 26 September 2007

Maltese IT company commences trading in Malta Stock Exchange

Charlot Zahra

Maltese IT company 6pm Holdings plc started trading in the Malta Stock Exchange (MSE) yesterday after successfully offering 30 per cent of its shares to the public through stock-broking firms.
In the opening session at the MSE yesterday, the opening price of GBP 0.67 per share remained unchanged with two trades totalling 3,000 shares for a total value of GBP 2,020.
Barely a week before, on Monday, 17 September 2007, share subscriptions for the 30 per cent shareholding in 6pm Holdings plc opened and closed the same day in the afternoon due to high demand.
Under the IPO, 2,250,000 ordinary shares of a nominal value of GBP 0.20 each in the holding company were offered at a price of GBP 0.67 each, raising a total of GBP 1,507,500.
The company’s valuation of GBP 5 million was benchmarked against the performance of UK information technology companies. This was expected as over 95 per cent of 6pm’s revenues are derived from UK based clients.
6pm currently employs 105 staff and turned over a sales figure of GBP 6.5 million in the
year to December 2006. The company said revenues for the current year should be in line with last year but with a marked improvement in profitability.
Principal Directors Ivan Bartolo, Alan West-Robinson and Steve Wightman, who until now owned 100 per cent of the issued share capital of company, will maintain about 70 per cent of their stock.
They have undertaken to hold a controlling stake for up to two years after the float.
No new capital is being raised as part of the dealings and the three founders of the company will receive around GBP 1.5 million for the shares being sold.
On 28 May 2007 6pm Holding plc was set up as a holding company with the aim to acquire the shares in the 6pm Group’s operating companies – 6 pm Limited and 6pm Management Consultancy (UK) Limited.

On 6 July 2007 the company acquired 100 per cent of the share capital of 6pm Limited except for one non-voting, non-participating share held by Ivan Bartolo, and GBP 498,420 resulting in goodwill.
On 26 July 2007 the company acquired 100 per cent of the share capital of 6pm Management Consultancy (UK) Limited for GBP one million resulting on goodwill on acquisition of GBP 885,718. Both transactions took place through a share exchange agreement.
Over the years, 6pm has partnered with its customers across the globe and provided them with tools and techniques to conquer four business challenges, namely, Reducing Time to Market, Reducing Overall Cost, Increasing Productivity and Improving Quality.
6pm’s business runs along 3 streams:
(1) IT Services which encompass project services and Resourcing, bespoke development, Business Intelligence expertise and services, support and maintenance, and the 6pm Testing Factory and Agile productivity tools and services.
(2) A specialist and ‘different’ Agile Consultancy with a focus on a benefit driven Dynamic Systems Development Method (DSDM) framework that encompasses the whole business as opposed to a software development methodology.
(3) A Products Solution Business that spans from our proprietary AXLE™ Productivity tools, to AXLE™ Studio a revolutionary Business Intelligence tool new to the market, and Enterprise Security Analytics with Sensage, amongst others.
6pm has offered IT services to a number of international clients such as Capgemini, Sungard Vivista, CACI, PRG Schultz, UK Local government, British Airways, the Maltese Government, Storebrand, Fujitsu, Toyota GB, and Sheffield Hallam University.
The Issue was made through an Intermediaries Offer and little or no marketing of the Shares was made in the media. Instead Stockbrokers were expected to contact clients who traditionally invest in local equities and place the Shares accordingly amongst their respective clients.
Financial observers told BusinessToday that although it was a relatively small IPO by value, the huge take-up of the share offer especially at pre-placement level, shows that Maltese investors wish to invest.
“Although the track record of this company is limited when compared to other well-established companies such as Maltacom and HSBC, the Maltese investor also has faith in them.
“6pm operate in a very competitive sector and if another company from the same sector had to offer a similar IPO it would have a similar success because Maltese investors are keen to invest in the IT sector.
“This IPO has also brought a much-needed breath of fresh air to trading on the Malta Stock Exchange, which had become stagnated recently,” they insisted.

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