The resurgent investor interest in hi-tech flotations was in further evidence yesterday with two more technology companies announcing plans to list on the main market.

IFX Power, a company that makes the hardware needed to operate electronic gadgets for the power industry, said it had raised £30.6m before expenses and would command a valuation of around £117m when its shares are expected to start trading on July 5.

Database software company Alterion plans to raise £20m and will be valued at around £60m.

The float announcements came as shares in internet software firm Orchestream jumped 74% on their first day of trading, just a few weeks after several technology, media and telecom floats were postponed due to market turbulence.

Letsbuyit.com, Yes Television, Filmgroup and Chello were among high-profile new technology-based companies reassessing fundraising plans on the public markets in recent weeks.

IFX Power's European managing director, James Peters, and chief executive Larry Tracey have decided to use the float to cash in £3.4m worth of shares each. Broker Investec Henderson Crosthwaite said both had served the British business of IFX for several years and it was not unusual for key directors to sell shares at the time of a float. "They still retain large stakes," an adviser said.

IFX Power is made up of two power solution firm subsidiaries: a British company called XP and US-based firm called Foresight. Around £10.3m of the money raised will be used to fund the costs of acquiring IPS, another American company.

The group recorded turnover of £58m and pre-tax profits of £3.6m last year.

"What we are looking for from the IPO is to give the group visibility in the market and the opportunity to expand geographically," Mr Peters said.

Alterion, which manufactures software enabling companies to make better use of their customer databases, expects to be capitalised at around £60m if it completes a successful flotation on the main market later in the summer.

Investec Henderson Crosthwaite hopes to raise around £20m to help fund new Alterion offices in the US and Europe, as well as sales, marketing and development costs.

A former WH Smith finance director, Keith Hamill, is non-executive chairman of the group

In the year to March 31, Alterion recorded sales of £1.01m and pre-tax earnings of £12,000, compared to a loss of £255,000 in the previous equivalent period.

Useful links
IFX Power
Alterion
Orchestream