First Day of Dealings on the Alternative Investment Market of the London Stock Exchange
India Outsourcing Services plc (AIM: IOS), a company formed to capitalise on acquisition and investment opportunities in the Indian business process outsourcing (BPO) market, is pleased to announce its flotation today on the Alternative Investment Market (AIM) by way of a Placing.
Highlights
- The Company’s Chief Executive is Amit Pau, who has more than 10 years’ experience as an executive in the global telecoms industry. He was formerly managing director of Vodafone Multi-Media and a Non-Executive Director of Vodafone Spain and of Radamec Group plc. The Company’s Board includes Haresh Kanabar, Blue Star Capital’s Chief Executive, as Chairman and Nigel Robertson, Blue Star Capital’s Chairman, as Non-Executive Director.
- Blue Star Capital (AIM: BLU), the recently floated investment company, was instrumental in the formation of India Outsourcing and will hold 56.7 per cent of the shares in the Company following its flotation.
- India Outsourcing has been established to capitalise on acquisition and investment opportunities in India’s BPO market, which has grown rapidly with the rise of “offshoring”. The BPO market includes a wide range of services including call centres, help desks, back office operations, IT services and customer service operations. The global BPO market is forecast to grow to a market size of between $200 billion and $250 billion in 2008 (source: IDC).
- To date, more than 225 Fortune 500 companies use Indian BPO service providers. The Confederation of British Industry estimates that 29 per cent of British firms have transferred jobs offshore and predicts that 59 per cent are likely to do so in the next two years. According to recent studies, the Indian IT Enabled Services BPO industry grew at about 54 per cent during 2003-2004, recording revenues of US$3.6 billion in that period (source: NASSCOM)
- India Outsourcing has raised gross proceeds of £500,000 by way of a Placing.
- The Company has no trading businesses although a number of potential targets have been identified.
- Durlacher is the Company’s nominated adviser and broker.
Commenting on the flotation, Haresh Kanabar, India Outsourcing’s Chairman, said: “We have been delighted by the high level of interest in the fundraising for India Outsourcing, which reinforces our view that investors are seeking exposure to India’s rapidly growing outsourcing market. We look forward to making our first acquisition in India and to creating value for shareholders.”
| PLACING STATISTICS |
|
|
|
| Number of existing Ordinary Shares prior to the Placing |
5,000,000 |
| Placing Price |
5p |
| Number of Placing Shares |
10,000,000 |
| Number of Ordinary Shares in issue following the Placing and Admission |
15,000,000 |
| Percentage of enlarged issued share capital subject to the Placing |
66.66% |
| Market capitalisation at the Placing Price |
£750,000 |
| Gross proceeds of the Placing |
£500,000 |
| Estimated Net proceeds of the Placing receivable by the Company |
£395,000 |
For further information:
| India Outsourcing Services plc |
Tel: 020 7070 7283 |
| Haresh Kanabar |
|
Amit Pau
|
|
| Durlacher |
Tel: 020 7459 3600 |
| Jonathan Retter |
|
Katherine Roe
|
|
| Buchanan Communications |
Tel: 020 7466 5000 |
| Mark Court Elly Williamson |
|
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