Shekel Brainweigh Limited (ASX: SBW), is an Israel-based tech company which is developing, manufacturing, marketing and distributing advance weighing systems for retail, healthcare & industrial markets. The company was founded in the year 1971 & is being currently headed by Mr. Yoram Ben Porat – the Chief Executive Officer (CEO). Currently, the company has a robust clientele of blue-chip companies namely Toshiba, Fujitsu, Datalogic, Diebold-NixDorf & GE healthcare and reported a revenue of US$18.2 Mn and a Net profit of US$ 1.9 Mn for the FY 2017. The biggest investors as on the day of listing were Axcel partners with a stake of 37.2%, Consepta ltd, and Agriculture cooperative society ltd with a shareholding of 25.34% and 16.59% respectively.
The Company has commenced trading on the ASX and has raised A$10.15 Mn via an issuance of 29 Mn shares at a price of $0.35. RM Corporate finance has acted as a Corporate Advisor to the firm & Lead Manager. The stock opened at $0.35 and achieved a high of $0.40 during the day, gaining by 14.28%. The closing price for the stock was $0.37. The stock registered a volume of 475,195 units during 20 November 2018.
The objective of IPO is to extend this advanced weighing technology, i.e., “Product aware surface technology” to supermarket shelves with the objective of retail automation. This will aid the big retailers in automating their inventory management system which would lead to capturing lost sales in out-of-stock & waste of goods in over-stock inventory conditions. Also, this would allow the customers with a “Grab & go” service without the need to scan the barcodes.
Thus, considering the pedigree of past 47 years, solid revenues and operational profitability the stock seems to be an attractive bet for the long-term investors as the type of business model in which it operates into and the kind of technology that they propose to introduce would reap the benefits only in the medium to long-term.