The Traffic Group $5m IPO issue opens today.

28 October 2009, Melbourne: Traffic signage and street sweeping company The Traffic Group (ASX:TTG) will open its initial public offer (IPO) today to raise $5 million. The company is profitable and plans to substantially expand by winning new business, acquiring new businesses and to buy assets from distressed competitors.

The Traffic Group was established in 2007 by managing director Con Scrinis. The strategy of The Traffic Group is to consolidate the fragmented traffic services industry and the IPO fundraising will accelerate the companys growth.

The Traffic Group includes wholly owned business units Allpack Signs, Cleansweep and Russell Signs across Western Australia and South Australia and head office in Melbourne. These businesses manufacture, market and sell road and traffic signs, corporate signs and provide road sweeping services. Clients include road construction and maintenance companies, local councils and road authorities.

The Traffic Group prospectus offers 25,000,000 shares at $0.20 each and if subscribed in full the company will have a total of 47,563,171 shares on issue with a market capitalisation of $9.5 million. The offer is being managed by Sonray Corporate, opens today and is set to close on 16 November. ASX listing is due on 23 November.