Stock market listing in store for NetStore

Application service provider (ASP) NetStore is set to float on the London Stock Exchange.

Application service provider (ASP) NetStore is set to float on the London Stock Exchange.

The company, one of only two UK ASPs chosen to participate in Microsoft's applications hosting pilot programme, is expected to be valued at between £200m and £240m in next month's flotation.

It will use the proceeds of the initial public offering (IPO) to fund further investment, particularly for recruiting more staff. Twenty-five per cent of the firm's shares will be available to the public.

Paul Barry-Walsh, chairman and co-founder of NetStore, said: "We believe that the proceeds from the IPO and the additional profile of being a listed company will enable us to exploit the exceptional growth opportunities in the European ASP market. I am confident we will step up the pace of growth in our business-to-business offering and benefit from our first-mover advantage."

NetStore, which targets the SME market, sells through resellers. It has already signed agreements with Deverill, First Stop, Mercury Systems, AONIX, Complete Data, CPC Computers, Object Support and ATL. BT is also participating in Microsoft's applications hosting pilot programme.

No further details of NetStore's plans were available as the company is in a period preceding the listing.

NetStore also announced it has appointed David McLeman, former UK general manager of Data General, as its vice-president of sales. The ASP has also promoted David Blundell to vice-president of application services.

McLeman will oversee NetStore's direct sales and its reseller channel, while Blundell will supervise the roll-out of Microsoft's application hosting programme.