Gefen Technologies braces for ASX listing, eyes $128M IPO

Summary

  • Gefen Technologies has lodged IPO prospectus to raise $25 million at a market value of around $128 million.
  • The Israel-based tech firm is expected to be listed on the ASX on June 17 at an issue price of $1.
  • Ahead of the IPO, the company has raised $6.5 million in two pre-IPO rounds.

Israel-based technology firm Gefen Technologies is planning to enter Australia’s insurance market by listing its shares on Australian Securities Exchange (ASX).

The insurance marketing tech company has lodged a prospectus with the Australian Securities and Investment Commission (ASIC) to raise $25 million via an initial public offering (IPO) at a market value of around $128 million. The company will issue 25 million shares at an offer price of $1 apiece. Applicants can bid for a minimum of 2,000 shares and thereafter in multiples of 500 shares.

The offer will open for subscription on 19 May 2021 and close on 31 May 2021. The share of the company is expected to list on the ASX on June 17.

The primary objective of the offer is to use capital proceeds to meet the admission requirements of ASX as well as to meet funding requirements related to sales and marketing, business development and working capital.

RM Corporate Finance and Morgans Corporate are joint Lead Managers to the offer and will be assisting the company in managing the IPO.

As per the IPO prospectus, the offer is not underwritten and that the company will not accept oversubscriptions above $25 million.

Gefen had initially planned to list its shares by end of last year, but it was delayed due to the outbreak of the coronavirus pandemic.

Ahead of admission on ASX, the company had managed to raise $4 million in a pre-initial public offering (IPO) convertible note offer in July 2020 and another $2.5 million in April 2021.

Founded in 2014, Gefen is a software as a service (SaaS) platform that helps financial service and real estate companies to digitise their agent networks. It caters to some major insurance companies such as Aussie player TAL and global giant Generali Group.

Gefen has developed a digital platform marketplace for regulation-heavy industries - insurance, financial services and realty - where enterprises use agents to sell complex products to customers where human advice, expertise and touch are required.

The company intends to grow by continuing to pursue its dual strategy of securing more engagements with carriers to generate additional recurring subscription revenue and to acquire more networks of independent agents to generate additional commission revenue. To fund this growth plan, the company seeks to raise capital under the offer.

Last month, Mouthguard tech firm HitIQ filed an IPO prospectus to raise up to $10 million by listing shares on the ASX. The tech start-up proposes to list its shares on the domestic bourses by early June 2021. The IPO opened for subscription on 30 April 2021 and is expected to close on 21 May 2021.

HitIQ plans to raise a minimum of $7 million by issuing 35 million ordinary shares at an issue price of $0.20 apiece and a maximum of $10 million via the issue of an additional 15 million ordinary shares at offer price of $0.20.


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