Aerometrex has made a triumphant start to life on the ASX
Investors lucky enough to get shares in Adelaide company Aerometrex will be popping the champagne corks today.
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Aerometrex shares have more than doubled in the first minutes after the company listed on the Australian Securities Exchange, pushing its value above $180 million.
The Adelaide aerial mapping and 3D visualisation company raised $25 million in new capital through the listing of $1 shares.
But the stock has already traded as high as $2.07 after listing this morning and is currently fetching $1.90 per share.
At $1 per share the initial public offer valued the company at $94.4 million on listing
Glynde-based Aerometrex specialises in aerial mapping and photography, LiDAR (light detection and ranging) and aerial surveying, and has been in business for almost three decades.
“Aerometrex delivers mapping solutions to a range of customers around Australia, from state and federal government, to tier one large organisations, as well as a range of SMEs,’’ the prospectus says in a letter from chairman Mark Lindh.
The company said the IPO proceeds would be used to fund further domestic and international growth. In addition to its Australia-wide successes, overseas contracts have been won in France, Germany, New York, Philadelphia and New Zealand.
he prospectus shows the company has been profitable for the past three years, growing net profit from $2000 to $2.57 million in the past three financial years.
Revenues have grown from $9.7 million in 2016-17 to $16.1 million in 2018-19.
While the company has traditionally been strong in aerial mapping and photography, the prospectus says it is looking to grow its subscription-based MetroMap product, to provide a more predictable revenue base.
The funds raised will be used to grow the subscriber base of MetroMap, establish a US office, buy new equipment, invest in R&D and for working capital.
Mark Deuter will remain managing director of the business, on $302,000 per year, and will be among the largest shareholders with a 12.1 per cent stake in the business after listing.
Aerometrex was founded in Queensland in 1980 and relocated to SA in 2000. The current owners bought the business in 2011 and it is primarily owned by staff and management. It has 82 staff.
Adelaide-based Taylor Collison Limited acted as co-manager on the listing. Adelaide Equity Partners acted as corporate advisor to the Company.