Brisbane-based Audeara has raised $7m in its ASX float to ramp up sales of its specialised headphones
An innovative Brisbane headphone developer which relied on a Kickstarter campaign for its early funding is now valued at $21m and about to list on the ASX.
City Beat
Don't miss out on the headlines from City Beat. Followed categories will be added to My News.
TUNING IN
Listen up!
A Brisbane health technology group, which has developed an innovative pair of noise-cancelling headphones complete with a personalised hearing test, is poised to start trading on the ASX next Tuesday.
Audeara managed to raise $7m from investors at 20 cents a share in a full-underwritten float that was heavily oversubscribed. The company will have a market capitalisation of $21m at the issue price.
The company, overseen by managing director Dr James Fielding and chief technical officer Alex Afflick, now hopes to expand nationally as well as across the US, Europe and Asia to tap into a market expected to be worth $US5.7bn by 2025.
“We’re just getting going. The hard work is ahead of us. It’s incredibly exciting,’’ Fielding told City Beat this week.
The IPO is the culmination of a six-year journey to commercialise a product which has enjoyed financial support from some astute backers, including Wotif co-founder Andrew Brice and billionaire coal baron Brian Flannery.
Fielding will have his foot on 7.8 per cent of the company when it lists with his 8.2m shares worth $1.64m at the issue price. Afflick’s 4.7 per cent shareholding is worth just under $1m.
The aim is better sound, not louder sound. So how does it work?
The Bluetooth-enabled headphones can be adjusted via an app which allows users to respond to a series of prompts about whether certain frequencies can be heard. The whole process takes just a few minutes but audio clinics can further refine the sound if needed.
Fielding dreamed up the idea with colleague Dr Chris Jeffery after they noted how difficult it was for patients to get a hearing test in the public health system, where wait times for audiologists were often many months.
(Jeffery, a former Army engineer, departed two years ago to focus on his successful start-up, Field Orthopaedics, and its revolutionary micro-screw to treat fractures.)
Audeara incorporated in 2015 but it took another two years to launch its first Kickstarter campaign, which raised more than $466,000 from about 1500 investors around the world.
That paid for the initial order of 2500 headphones, which are made in China and sell for $499 either online or in several retail outlets.
Helping drive sales are the company’s links to government programs assisting veterans, the hearing-impaired and people registered with the NDIS.
Fielding estimates that about 10 per cent of the $965,000 in revenue generated in 2020 came from parents of autistic kids who benefit from the NDIS.
Audeara, which has posted net losses totalling nearly $2m over the past two financial years, has not disclosed future revenue or profit targets.
It faces competition from the likes of Nuheara, the listed Perth firm which makes “smart’’ earbuds that also offer a hearing test.
But Fielding downplayed the threat, claiming his headphones “use a much more precise algorithm to build a personalised audio profile’’.
With an estimated one in six Aussies suffering from hearing loss, it’s clear that there’s enormous potential demand in this country alone for any product that addresses the problem.
FINANCIAL WINDFALL
It’s a huge week financially for the gang at Women’s Legal Services, which provides essential support for thousands of at-risk women and kids each year.
First, the national non-profit received a $129m fill up in the federal budget, funding that will allow it to help plenty of women escape from violent domestic relationships.
The group’s Queensland’s arm is also gearing up for its biggest annual fundraiser this Saturday night, the virtually sold-out Dancing CEO’s gala at Brisbane City Hall.
Boss Angela Lynch said Wednesday she was “heartened’’ by the government’s move to help her group, which fields more than 8000 calls a year.
“The budget investment is significant and acknowledges the scale of the issue of gendered violence,’’ Lynch said.
“For many women and children at risk, the justice system and courts are the only pathway to find safety, and specialised legal support is essential to keeping them safe through that process.
“Our services are so chronically under-resourced that there are so many women we haven’t been able to help. This ongoing support over four years gives us hope that more women and children will get the help they need.’’
Meanwhile, a black-tie crowd of nearly 700 is expected to help the group raise up to $450,000 at the Dancing CEOs bash, which will see 10 local bizoids strut their stuff on stage and compete for several gongs.
Organisers are hoping to best the record $440,000 haul from the last such event, which was held two years ago.
Coffers will also be topped up thanks to a number of raffles and auctions.
The biggest prize on the night is a draw for a party of six to fly by private jet to Hayman Island for a three-night stay in a beachfront villa with pool.
It includes a champagne and seafood lunch on Whitehaven Beach and a customised sailing experience on a 15 metre yacht. Just 4000 of the tickets at $50 a piece are on offer.
The latest tally shows the dancers had attracted pledges totaling just under $351,000, close to their goal of $375,000.
For one of the competitors, beauty clinic owner Francesca Webster, there’s a personal element at play.
“I’ve competed in Dancing CEOs, and I know how great the event is and the impact it has, but this year is particularly special to me,” she said.
“It was only in the lead-up to this year’s competition that I shared my story of survival.
“This year, I’m dancing for the one in six women who, like myself included, have experienced physical or sexual violence at the hands of their partner.’’
They built this city: Iconic architectural firm racks up 140th
Brisbane’s longest-serving architecture practice WilsonArchitects - responsible for many of the city’s landmarks - has notched up an amazing 140 years in the business.
$1100 fee hike at exclusive Brisbane club – and that’s just to apply
Prospective members of one of Brisbane’s most exclusive clubs have been warned to get in quick, with the application fee set to spike by more than $1000.