Fund raising through Initial Public Offering is one of the best disclosed means for capital inflow for business entities. Investors evaluates the business model, the business strategies and as well as the expected demand of the product offered by business before investing in an IPO. In most of the cases, the businesses intend to expand their product offerings, distribution as well as their branches or franchisees and thereby proposes for an Initial Public Offering.
We will be discussing about five upcoming IPOs for 2020.
Kaiser Reef Limited
Offer Details: Kaiser Reef has opted for Initial Public Offering, wherein the company is planning to issue 22,500,000 number of shares at an offer price of $0.20. Gross proceeds of the offer are expected at $4,500,000. The minimum subscription issued as on the prospectus is 4,950,001, while shares issued pursuant to the Offer is quoted at 22,500,000. Total Shares on issue after completion of the Offer will stand at 33,450,001. The IPO will close on 7 February 2020 and proposed date of listing the shares on ASX under the suggested code KAU is 27 February 2020.
Offer Details (Source: Company Prospectus)
Company Profile: Kaiser Reef Limited is an Australian unlisted public company focused on project aiming at substantial scale of gold mineralisation located in NSW (New South Wales). The company is primarily incorporated, on 2 September 2019, for acquiring Chase Metals Pty Ltd and for being a part of ASX listed companies. Since inspection, the Company focus has been the first exploration programmes for the Project along with pre- listing activities and raising seed capital.
Exploration Potential: The project is considered prospective for large scale intrusive gold mineralisation. The existence of a substantial gold field overlying the exploration targets is considered to enhance this as an exploration target and further encouragement is provided by the felsic host of some of the mapped and previously mined mineralization.
The business is expecting to allocate $2,500,000 for Exploration expenditure, $420,000 for Expenses of the Offer, $1,000,000 for Administration costs while $990,855 for Working capital requirement.
The company received $5,000,000 (before costs), by issuing 25,000,000 shares at an issue price of $0.20 each in an IPO. The public offer was open for subscription from 25 November 2019 to 6 December 2019. Shares of the company started trading under the ASX ticker ICE on 18 December 2019.
Key Offer Details (Source: Company Prospectus)
Company Background: iCetana is primarily focused on the development and commercialisation of video analytics software across the Australian market. The business was incorporated during 2009 and intended to market the technology developed by researchers in the School of Electrical Engineering, Computing and Mathematical Sciences at Curtin University. The research and technology drives for the efficient analysis of very large data sets to identify anomalous activity and events outside normal patterns.
Business Summary: The Company has established the iCetana Solution and reported more than 20 Active Customers with operations across 35 locations. The company supports more than 10,000 video surveillance cameras globally.
Allocation of IPO funds: As per the Management commentary, the company intends to allocate its funds across the following purposes:
- The business is likely to invest in go-to-market expansion of both the direct and indirect sales channels to enhance its current customer base.
- For the coming years, the company is looking to acquire more customers and contracts to a recurring revenue model.
- The business manages sales and marketing costs as a percentage of expenses, with the addition of more Resellers to drive greater market coverage and lower customer acquisition costs.
- The company intends to expand its addressable customer segments with solutions allocated for specific use within new industry verticals.
Emerald Clinics Limited
Emerald Clinics Limited is a healthcare-technology company which provides clinical services such as cannabinoid-based medicines. In the proposed IPO, the Company will issue shares ranging from 30,000,000 to 40,000,000 at an offer price of $0.20 per share for minimum $6,000,000 to maximum $8,000,000. The Company will also issue Convertible Notes for up to 20,625,000 shares to be issued on conversion. As per the prospectus, the closing date for the offers is 17 January 2020. The allotment date is fixed on 23 January 2020. The shares are expected to be listed on 7 February 2020 under the proprosed ASX code EMD.
Company Background: The company intends to provide the safety and efficacy of cannabinoid-based medicines through technology which captures clinical data that can be used to generate clinical evidence. It also intends to ensure that medicines are properly prescribed to patients in order to improve their health.
Allocation of Fund raising: The business is opting for fund raising in order to make expansion of its clinics, development of the Data Platform and meet its working capital requirements.
As per the offer details, the company offered 20,000,000 number of shares as the minimum subscription and 25,000,000 number of shares as the maximum subscription with an Indicative market capitalisation on completion of the Offer of $26,396,551 to $27,396,551. The gross proceeds under the offer is estimated in between $4,000,000 to $5,000,000 at $0.20 price per share. The Company is expected to be listed on 14 February 2020 under the ASX code TDY.
thedocyard Limited is an Australia based company, which is engaged in developing cloud - based software services used for all aspects of legal and financial transactions to be undertaken on one central platform. The primary features of the product offered by the company are:
- Standardization of workflow management, which enhance the efficiency of repeatable processes and other checklists.
- The platform increases the collaboration of the different functional segments under the same platform.
- The platform also provides services like storing, sharing and accessing of documents from one secure location.
Objectives of IPO: The company will use its funds from IPO for its working capital requirements required to meet its business objectives. The funds will further be allocated to increase its sales and marketing across the ANZ and the UK regions.
Nyrada is a medical based company, which specializes on development of molecule drugs for cardiovascular, neurological and chronic inflammatory diseases. The company is a US based biotechnology subsidiary of Noxopharm Ltd.
Offer Details: As per the prospectus, the business has opted for IPO under the prospectus dated 26 November 2019 wherein it intended to offer 35,000,000 to 42,500,000 CHESS Depositary Interests (CDIs) and raise about $7,000,000 to $8,500,000. The company listed on ASX on 23 December 2019 under the code NYR.
Purpose of the IPOs: The company intends to raise a maximum of $8,500,00 capital in order to execute the followings:
- To execute the preclinical developments and marketing of PCSK9 program.
- Assistance to the working capital requirements of the business.
- To recover the expenses and costs of IPOs.
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