South Africa’s largest privately owned independent call-centre operator, Dialogue Group, expects to raise R51-million via a pre-listing private placement of 51-million shares at R1 a share, the group said on Friday.
The JSE has granted Dialogue Holdings a listing for a maximum of 210-million ordinary shares on the Alternative Exchange (AltX) with effect from the start of trade on Tuesday September 19.
CEO Jason Drew said the proceeds will be used to grow the company’s share of the $130-billion outsourcing market through acquisition, and to increase working capital. Dialogue should list with a market capitalisation of R210-million.
He added that projected growth in the call-centre industry underpins the group’s prospects.
“Listing on AltX is the ideal mechanism to launch the group into the next phase of development, with the funding for increased capacity enabling us to deliver on larger long-term contracts,” said Drew.
According to the 2005 Key Indicator Update issued by Deloitte Touche Tohmatsu for the call centre and business process outsourcing market in the Western Cape, it is the fastest-growing sector by virtue of employment. The industry grew by 74% in the past two years to a current total of 14 345 people.
The group plans to take advantage of the government’s efforts to turn South Africa into a call-centre hub in an effort to help the economy battered by a high unemployment rate.
Drew said costs of running a call centre in South Africa are 35% to 40% lower than in the United Kingdom and only marginally higher than destinations such as India and the Philippines. Growing appreciation of South African centre agents’ efficiency and well-spoken English should help in this regard.
Dialogue also said it projects revenue to jump by 45,6% from R78,3-million in 2005 to R114-million for 2006. Gross profit is forecast to grow to R48,3-million by December 2006, with headline earnings forecast at R12,3-million.
The growth trend is set to continue to December 2007 with an expected R64-million gross profit and headline earnings of R19,1-million, the company said. — I-Net Bridge