While one keeps an eye on management and past financial performance of a float, the growth prospects and strategic partnerships also sometimes play an equally important role in identifying the future course of performance. Recently, Tandem Corp, which is an ingenious, fast-moving workforce design and delivery company, has been in the spotlight with regards to its float on ASX. The group is a telecommunications contractor for biggies including Telstra, Foxtel and nbn, and particularly offers field services to customers of major telecommunications and Pay TV operators. Tandem has been positioned as 69^th company on the IBISWorld’s Top 500 Private Companies list for 2017, at the back of significant growth over the last 12 months.

The group has recently bagged a new 10-year servicing agreement with Telstra (ASX: TLS) under which Tandem will continue to look after the TLS outsourced customer installations and maintenance.

The group is being discussed among small cap fund managers looking for players with an ability to lead considering the National Broadband Network roll-out. A lot is being speculated about the group as the key strength for the group comes in from the relationship with players like Telstra. Tandem’s biggest account is with Telstra, which is associated with over 99% of group’s revenue and earnings.

While various pre-marketing reports on the group are being circulated among fund managers, it will be quite interesting to see how this float performs. Tandem is expected to be valued around $288 million to $339 million as a listed company, which is said to be at a discount to listed peer Service Stream.

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