BPS Technology has set ambitious growth targets for its core business, Bartercard, in a prospectus issued yesterday. The company, which plans to list on the Australian Securities Exchange in September, aims to double Bartercard's member base over the next two years.BPS is offering 28 million shares at A$1 a share. Upon listing BPS will acquire the businesses of Bartercard in Australia, the United States and the United Kingdom from Barter Futures. Barter Futures shareholders, who are the founders of Bartercard, will hold 28.5 million BPS shares.Bartercard is a closed proprietary reciprocal trading system, whose member businesses trade goods and services with each other using a digital currency called a Trade Dollar. It has been in business for 23 years.It processes 1.8 million transactions a year worth $600 million between 24,000 merchants. In addition, there are a number of Bartercard licensees operating independently.The business is structured around local trade exchanges. Bartercard has 20 trade exchanges in Australia - half owned by the company and half by franchisees. In the US it has 15 franchises, with around 500 members in each.Part of the proceeds of the initial public offering will go toward acquiring Bartercard New Zealand, which has a separate group of owners. That deal is already under contract.In addition to the Bartercard businesses, BPS will acquire Bartercard Management System, which provides services to licensed Bartercard exchanges, and Tess, a separate cloud-based software service to other barter exchange operators.BPS already owns a start-up mobile loyalty and rewards application called Bucqi.BPS is forecasting that it will generate $51.6 million of revenue and $6.5 million in net profit in the 2014/15 financial year. Bartercard will account for 86 per cent of EBITDA, Tess four per cent and Bucqi 10 per cent. The Australian division will account for 57 per cent of revenue.At its offer price of $1 a share the company would trade on a prospective price-to-earnings multiple of nine times and a forecast dividend yield of 7.2 per cent, assuming it meets its forecasts.Bartercard charges members a joining fee, a marketing and support fee of $39 a month and a 6.5 per cent transaction fee on every trade. It also operates a franchise business and licenses trade exchanges in different markets.Bartercard cites the International Reciprocal Trade Association to support its claim to being the biggest player in the business-to-business barter market. According to the IRTA, there are a total 2000 trade exchanges operating worldwide transacting more than US$20 billion and growing at 15 per cent a year.Apart from purchasing Bartercard New Zealand, the company's expansion plans include opening 20 new franchises in the UK, 300 new franchises in the US and the appointment of licensees in Asia, South Africa and South America.Bartercard's business proposition is that a trade exchange provides businesses with an additional sales channel. Typically, members use Bartercard to trade excess goods and services, using it as an alternative to mass discounting. Transactions through a Bartercard trade exchange usually account for about five per cent of a member's turnover and the