"Virtual telco" Inabox Group could release new shares onto the market soon after listing as it prepares to grow through acquisitions.
The company, which is set to list on the Australian Securities Exchange on Friday morning, buys telecommunications capacity from Telstra and other larger companies before on-selling it to more than 200 smaller players. It also white-labels billing and support systems to a range of clients.
Inabox Group chief executive Damian Kay said the company planned to use its newly raised funds to buy out smaller rivals that can't gain scale on their own.
"We've got a number of complimentary opportunities that we're looking at," he said. "Buying some of those smaller guys will help us continue to assert our dominance in this part of the market.
"But they'll all be in Australia because I have no interests overseas."
Mr Kay acknowledged the company, which will list with the stock code IAB, would be tightly held with the top ten shareholders collectively owning 87 per cent of the company.
The initial public offering was oversubscribed and raised $3.5 million, of which $2 million came from M2 Telecommunications in exchange for a 12 per cent stake in the newly launched company.
While the IPO will put just 18 per cent of the company onto the ASX, Mr Kay said he wouldn't rule out releasing more shares to boost the company's cash levels as required.
But he also noted the three founders of the company each own 20 per cent of Inabox and are escrowed for 18 months, which means they cannot sell any of their shares during that period.
"We have a number of great opportunities in the pipeline that will cost us a little bit of money to roll out," he said. "It's about making sure we have the balance sheet to afford them [and] it's important we build up the liquidity in the business."
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