Listing disto Dicker Data leaps 5% on day one
One penny extra per share...
In practically the only tech float currently slated for 2011 on the Australian Stock Exchange (ASX), Dicker Data is trading at 21 cents per share, after listing at 20 cents.
The float of the hardware distributor illustrates, among other things, the way the mining boom is distorting Australia’s economy. Of the 31 upcoming floats currently listed by the ASX, 26 are in the mining and exploration sector; two are in agriculture; and biotech, IT and the financial sector manage one each.
Dicker’s listing documents aptly illustrate the slim margins available in Australia’s distribution business, with post-tax profits hovering at between 1.4 per cent and 1.74 per cent of turnover. In 2010, Dicker’s turnover of more than $286m yielded $4.5m profit.
The hardware distributor lists HP, Asus, Belkin, Canon, NEC, Kingston, Iomega, Netgear, Samsung, Sony, Targus and Toshiba as its vendors. ®