Global software and hardware technology company, Atomos Limited (ASX: AMS) has started trading on the Australian Securities Exchange (ASX) today (i.e., 28 November 2018) after the completion of an Initial Public Offering (IPO) which raised capital of $6 million through the issue of 14,634,146 new shares at $0.41 per share.
Atomos Limited was founded in 2010, and currently, it is having 74 employees across seven countries. The Company is involved in the operation of enhancing, recording and distribution of images in high-quality formats and it has developed a range of products including the Ninja, Shogun, and Sumo, designed to address the different segments of the video content creation market.
The Company is also having a strategic relationship with key technology providers within the ecosystem including Apple, Adobe, Canon, Sony, Panasonic, Nikon & JVC Kenwood.
The current product portfolio of the Company addresses a US$10 bn camera equipment market, making equipment that drives social and corporate video content. The Company is focused on expansion into the growing Social and Entertainment video content markets. Further, the company is also building upon its success in the Pro Video segment.
The IPO of the company was heavily supported by various local institutional investors and almost all existing shareholders in the Company prior to the IPO have agreed to voluntary escrow for between 6 and 24 months. The proceeds from the IPO will be used to support the Company’s global growth strategy, including expansion into adjacent growth segments of Social and Entertainment. Further, the Company will also use the IPO proceeds to launch and deploy new products from its newly developed platform Ninja V.
The Company has made an R&D investment of $39 million in its Ninja V platform, and it is planning to utilize this development and double its product range over the next 12-24 months. In FY 2018, the Company reported revenue of $35.6 million, and in FY 2019 the Company is expecting a revenue of $42.2 million at a projected gross margin of 47 percent.
As per the Company’s co-founder and CEO Mr. Jeromy Young, IPO and ASX listing of the company was an essential step in growing Atomos presence in the burgeoning video content creation market.
The Company has spent many years investing in silicon and software technology development to give Atomos an advanced offering with proprietary processing and trade secrets that could support the Company’s product line. The silicon and software technology combined with the Company’s established brand and outstanding key relationships, place Atomos in an ideal position for continued growth.
AMS’s shares traded at $0.480 on 28 December 2018 (AEST 2:44 PM) which is higher than the IPO price of $0.41 per share.
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