Kiwi firm finds £8.7m

New Zealand-registered network security play Endace makes it debut on AIM tomorrow, having pulled in a less-than-hoped-for £8.7 million through a Panmure Gordon-sponsored float.

Chaired by Professor Ian Graham, Endace was originally after £14 million, but ended up raising £8.7 million – £6.8 million of new money and £1.9 million for selling shareholders – following a solid roadshow to more than 50 institutions.

Endace, which boasts subsidiaries in the UK and USA, has market-leading technology that helps companies and governments guard against the rising tide of internet viruses and hackers.

The profitable concern, which will be the first Kiwi venture to hit AIM, was founded back in 2001, and designs and sells specialised network interface devices and systems for a market burgeoning on the volume and sophistication of attacks on the network and its users. 'Internet crime is becoming more and more vicious, and more and more criminal', argues Graham, 'and we are seeing a lot of virus activity'.

Endace trebled sales to US$6.53 million last year to March, and has around 108 customers ranging from government security agencies, blue-chips and international telecommunications giants. Latest major wins have come from 'a router manufacturer, a bank and a defence contractor'.

Growth to date has been held back by a lack of capital and the funds raised on AIM will be channelled into direct sales and support. A starting market cap of £23 million is expected.