Wireless modem vendor Vtion Wireless Technology plans to raise between 90m and 100m euros ($131.9m and $146.5m) in an IPO on the Frankfurt, Germany stock exchange to expand R&D, provide for acquisitions, and establish its own distribution network.
Fuzhou, China-based Vtion describes itself as one of the leading providers of wireless data card solutions for mobile computing over wide area networks in the People’s Republic of China.
The company, which has a 200-strong workforce, says it has achieved annual revenue growth of more than 100% over the last three years. It says net income was 2.1m euros ($3m) on revenue of 10m euros ($14.7m) in 2006.
In the first nine months of 2007, it reported net income of 6.2m euros ($9m) on revenue that rose 151% to 19.3m euros ($28.3m).
CEO and majority shareholder Chen Guoping said that with the additional capital, it could benefit from the growing demand in the 2.5G and 2.75G market and also from the expected dynamic growth following the introduction of 3G.
Until now, the booming wireless modem market has been dominated by three companies: Novatel Wireless in the US, Option in Belgium, and Sierra Wireless in Canada. A shadow hangs over the industry as Qualcomm is developing a chipset that will be offered by PC maker and this makes separate cards unnecessary.