ActivePort IPO: How to buy shares in this small cap stock

Highlights

  • ActivePort IPO is hitting the local bourse on 27 September 2021.
  • Under the offer, the company is planning to raise a minimum of AU$10 million and a maximum of AU$15 million from investors.
  • The majority of the IPO proceeds would be utilised for the development of its global sales team.

Adding more heat to Australia’s raging IPO market this September is telecommunication software provider ActivePort Group Limited (ASX:ATV), which is set to hit the ASX on 27 September 2021.

ActivePort is in the business of building innovative software products used for synchronising data connections between offices, factories, etc. to core cloud computing services. The firm generates revenue by licensing its software on a per-connection basis, selling data transit capacity on its SD-WAN aggregator network and providing managed services to customers.

Key details of the IPO

The company is planning to go public by listing its shares on the ASX on 27 September 2021. It has lodged the prospectus with the ASIC (Australian Securities and Investment Commission) on 13 August 2021 and opened the issue for subscription on 23 august 2021. The last date for the subscription was initially set at 6 September 2021, but in a supplementary prospectus filed on 6 September 2021, the company extended the date to 10 September 2021.

Alt: ActivePort IPO

Image Source: Copyright © 2021 Kalkine Media

Under the offer, the company is planning to raise a minimum of AU$10 million and a maximum of AU$15 million from investors. The company has priced its shares at AU$0.2 and will be issuing 50 million shares (to raise AU$10 million) or 75 million shares (to raise AU$15 million).

Post-completion of the offer, the company is expected to hit a fully diluted market capitalisation of AU$54.5 million (for AU$10 million issue size) or AU$60.1 million (for AU$15 million issue size).

Read more: IPO watch: Legacy Minerals falls 10% on ASX debut; should you subscribe? 

Use of the funds

The majority of the gross proceeds would be channelised towards the development of its global sales team, while areas such as products, engineering and technical support are also on the list to be strengthened. The working capital would be bumped up by AU$2.62 million (in the case of AU$10 million issue) or by AU$2.8 million (in the case of AU$15 million issue).

The company expects to have sufficient working capital post the completion of issue.

How to buy ActivePort shares

To invest in any IPO after it gets listed on the ASX, you  need to have an account with a registered broker or lead manager. Make sure your broker allows you to apply for IPO, as some discount brokers omit this facility and only allow to buy IPO from the secondary market once it gets listed. After opening your account, you can apply for ActivePort shares directly via your broker’s platform.

Alt: How to buy ActivePort IPO shares

Image Source: Copyright © 2021 Kalkine Media

If you somehow miss the IPO application, you can buy the same shares after they get listed on the ASX. Once you open an account with a registered stock broker, you have to fund your account with a bank transfer, debit card or any other medium which your broker allows, after which you can transact in the secondary market.

ActivePort IPO is hitting the ASX on 27 September 2021, at 11:30 AM AEST. A few other important IPOs that are about to make a debut this month are Alvo Minerals Limited (ASX:ALV) on 24 September 2021, Copper Search Limited (ASX:CUS) on 15 September 2021 and Culpeo Minerals Limited (ASX:CPO) on 10 September 2021.

Bottom lime

If you are looking to buy ActivePort shares, the date for the subscription for IPO has already passed. But you can always transact in the secondary market once the IPO hits the local bourse.

However, the company has a very limited history of operations and its growth significantly depends on customer relationships. The economic risk due to rising cases of COVID-19 may also pose a risk in the near future, therefore, investors should do their own due diligence before investing

Read More: iTech Minerals IPO: Here’s everything you need to know

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