Two UK companies to brave stormy IPO waters

Two UK-based high-tech outfits look set to fly in the face of prevailing financial wisdom by floating. Marlborough Stirling and Ubinetics have both announced their intention to IPO, despite the poor showing by Orange and the continued weak demand for technology stocks.

Marlborough Stirling is planning to float its financial software business within the next three months and, while aware of the tarnished image of technology stocks, says it's confident about how the company will fare in the City. Ubinetics is being more cautious, but also seems to be gearing up for an IPO. David Edwards, director of group marketing at Marlborough Stirling, said: "Obviously there is volatility in the market at present and shares are not of the highs that they were 18 months ago. But it is important to draw the differences between the newer companies and ourselves as we have been established since 1987 and have a cash generative growth." The company specialises in software for financial-based businesses and plans to use capital raised in the IPO to fund expansion in Europe primarily throughout France, Italy, Germany and Spain. Current clients include Alliance & Leicester and Nationwide. Edwards said a number of European countries are finally catching up with the UK in encouraging the use of private pensions, which will give the company a market to sell its products into. Edwards expects there will be a take up for the stocks in the company. He said: "I know that a couple of weeks ago people were selling off telecoms stocks but buying into software. People do look at individual businesses rather than branding all technology companies with the same brush." Ubinetics, which manufacturers testing equipment for 3G licenses, is understood to be considering a float on the London Stock Exchange either next year or 2003. It is as yet unclear which market the company will list on, although it has been reported that it could float with a value of between £600m and £1bn. While Ali Pourtaheri, chief executive at Ubinetics, has gone on the record stating the company's future plans to list, a spokeswoman for the company said: "It depends totally on the market." However, the company, of which PA Consulting owns a 66 per cent stake, has been linked to a listing for some time following a £50m private placing in November, at which time a trip to the stock market was first mooted.