Walker Wireless will float on the New Zealand stock exchange within the next few months, according to Computerworld sources.
Walker Wireless, which offers high-speed wireless Internet connectivity, is a spin-off from Walker Datavision. Walker Datavision is an Auckland company specialising in Eftpos, barcode scanning and smartcard technologies.
Datavision is, in turn, owned by Walker Corporation, a privately-held New Zealand company with interests in technology, textiles and apparel.
The general manager of Walker Datavision, Paul Ryan, recently handed over the reins of power to become CEO of Walker Wireless.
Walker Corporation announced late last year that it would raise $20 million to further expand Walker Wireless' network and that Australian brokers JB Were and Son had been given the task of finding private investors.
Ryan will not confirm that a float is taking place.
"It's public knowledge that we are looking for investment capital but that's all I can say at this stage."
Brokerage firm Ord Minnett senior analyst Arthur Lim says investors shouldn't shy away from high tech stocks but should look for quality offerings rather than the so-called "e-stocks".
"The market is starting to become more selective in terms of which sub-sector of the IT sector they should invest in."
Lim says the market for IT stocks was strong over January and February this year but is starting to subside back to lower levels as investors become more selective about which stocks they buy.
"If you go overseas, we can see that while tech stocks are running hot, some of the sub-sectors within have virtually collapsed."
E-tailing is one sector that Lim feels has been overheated for a while and is now coming off the boil.
"We do suggest investors buy IT stock, but they should be cautious and look for quality offerings."
Lim points to real-world companies, like Telecom or Baycorp, that actually make money instead of e-stocks that have to cannibalise their own capital base to pay their bills.