Tech stocks to make their ASX debut: X2M Connect and Way 2 VAT

Highlights

  • ASX witnessed healthy IPO momentum in the first half of 2020.
  • In September 2021, while one tech company got listed, X2M and W2V would start their ASX journey this month.

In the first half of 2021, ASX witnessed healthy IPO momentum as economic conditions and investor interest stayed strong. In the initial 6 months of 2021, 85 companies got listed on ASX, raising AU$3.5 billion in capital. The combined market cap cumulated to AU$22.8 billion.

Major listings were from the resources sector, representing around AU$650 million in capital. Companies from financials, healthcare, and technology sectors, raised ~AU$500 million.

International companies also created footprints on ASX on the back of attractive valuations. NZ-based DGL Group (ASX: DGL) and Chicago-based online education business Keypath Education International (ASX:KED) made their ASX debut during the period.

Zoom2u Technologies Limited (ASX:Z2U) from technology sector got listed on 10 September 2021, with two more tech companies to be listed on ASX.

RELATED READ: From Way2VAT to Koonenberry Gold: Upcoming IPO listings on ASX next week

X2M Connect Limited

X2M Connect Limited is expected to get listed on ASX on 22 September 2021. X2M is a technology company that uses the internet to provide productivity enhancements, cost savings, plus enhanced public safety to enterprise as well as government clients. The Company aims to provide services to the utility sector in the APAC utility market via technology that links over the internet like water meters and gas pressure sensors. These devices facilitate data exchange and control of these devices. These devices fall under the category of the Internet of Things (IoT).

Internet of Things (IoT)

Through this IPO, the Company would issue up to 24,000,000 shares for minimum subscription amounting to AU$6 million and a maximum of 32,000,000 shares worth AU$8 million.

The proceeds through this IPO and X2M's existing cash reserves would be used to implement the Company's business objectives, meet IPO expenses, administration costs, and working capital.

Post the completion of IPO, the Company's aim would be:

  • To increase its penetration in existing customer markets via the deployment of additional devices to existing customers.
  • To grow the existing customer base within the existing jurisdiction.
  • To increase sales and marketing team and resourcing to focus on pursuing high margin subscription and licensing customers.
  • To increase organisational capacity and executing staff to support the delivery of the Company's growth objectives and pursue further growth opportunities.

Way 2 VAT Ltd

Established in 2016, Way 2 VAT Ltd provides a fully automated completely VAT reclaim solution. Its patented & revolutionary artificial intelligence technology and "Automated Invoice Analyzer abilities allow its solution for invoice capturing.

The Company would get listed on 17 September 2021. Through this IPO, the Company aims to raise up to AU$7,000,000 (before costs). The Company would issue up to 35,000,000 fully paid ordinary shares at an issue price of AU$0.20 per share. The Offer is subject to a minimum subscription of AU$6,000,000.

Proceeds from IPO

The proceeds from this IPO would be used for sales & marketing, research & development, compliance & security, customer fulfilment & support and patent applications.

The purpose of this Offer is to provide the Company with a capital structure and improve financial flexibility for future growth opportunities and provide a liquid market for its Shares, and an opportunity for others to invest in the Company.

What Next?

The technology sector played a critical role during the pandemic and continues to play a vital role. Many businesses from this space has shown exceled performance post ASX debut.  

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