AML3D planning ASX listing in coming weeks
A 3D metal printing start-up that has quietly gone about its business in Adelaide’s northern suburbs is planning a $9 million listing on the ASX.
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An Adelaide start-up is planning a $9 million listing on the Australian Securities Exchange after developing 3D printing technology it hopes will revolutionise traditional metal processing methods.
AML3D, which operates from an industrial facility in Salisbury South, plans to use the funds on a new expanded facility in Adelaide’s northern suburbs and an expansion into Asia.
Using its innovative manufacturing process, which combines welding, robotics, metallurgy and 3D computer-aided drawings, the company recently completed what it believes is the heaviest 3D printed metal component ever manufactured.
The 1.4 tonne component, known as a panama chock, has been 3D printed from carbon steel, and is used to guide mooring ropes on ships and other marine vessels.
It will be dispatched to a customer in Singapore on Monday, where it will undergo verification and validation testing.
AML3D founder and managing director Andy Sales hopes that will lead to an order for a full ship set of 28 chocks, worth around $300,000.
“What we’ve created for the customer is the world’s largest commercial metal 3D printed component by weight - the last that we know of is around 450kg,” he said.
“What the customer has said is once it’s delivered and validated by third party testing, there’s a significant order they’d look to fill - 28 to 30 in the first 12 months - and that’s just one component of one size and these come in all different sizes.
“Just in the marine space there’s a myriad of other components that could be made through this process so the business opportunity is quite immense.”
Mr Sales said AML3D’s technology could be applied to all weldable metals, and delivered several benefits over casting, forging and other traditional fabrication methods, including improved strength and durability, and a reduction in lead times.
Those benefits are expected to appeal to heavy industry, including in the aerospace, defence, resources and marine sectors.
Mr Sales, a welding and mechanical engineer, worked on oil & gas and mining projects across the world before establishing AML3D in 2015.
In 2017, the company received a $495,000 grant as part of the Federal Government’s Accelerating Commercialisation program, and last year it secured accreditation from global maritime standards body Lloyd’s Register.
Backed by a high-powered board chaired by Adelaide businessman Stephen Gerlach, AML3D is now preparing a $9 million IPO as it prepares for global expansion.
It follows two recent capital raisings, which drew $3.7 million from high net worth individuals and other investors.
The company plans to open a new facility in Singapore, while retaining an expanded headquarters in Adelaide’s northern suburbs.
“The vision is to capture what we have here in Adelaide and to go global,” Mr Sales said.
“3D printing technology moves pretty fast, and to have a 3D printing business on a normal organic growth path, you can be taken out and it can be like a tortoise racing against a hare.
“We’ve done pretty well bootstrapping the business over the last couple of years but we need to bring on a few more people.”
Mr Sales said the company had fielded strong interest from potential investors during recent roadshows in Sydney, Hong Kong and Singapore.
AML3D currently employs seven people, and is currently on the search for more engineers, business development and management staff.
A prospectus is expected to be issued in early February, with the IPO planned later this quarter.