Acusensus’ $20m IPO to accelerate global rollout of AI-backed speed camera technology

If you’ve been caught using your mobile phone while driving, technology company Acusensus might be to blame. Now there’s an opportunity to profit as it lists on the exchange.

Acusensus managing director Alexander Jannink.

Acusensus, which has been helping governments ping dodgy drivers using their mobile phones for more than three years, is looking to raise $20m in an initial public offer to accelerate its already impressive revenue growth.

The Melbourne-based company, founded in 2018, has developed technology which allows it to detect drivers using mobiles phones, speeding and not wearing seatbelts, and has locked in contracts with governments in NSW, Queensland, Western Australia and the ACT.

Acusensus chair Ravin Mirchandani writes in the prospectus lodged with the corporate regulator on Tuesday that the company’s Heads-Up technology can take “high-resolution photographs through the windshield of each vehicle that passes to detect illegal mobile phone use’’.

“Key innovations in the Heads-Up solution are its method to remove glare from windshields, its high image capture rates and its near real-time machine learning artificial intelligence-based system which assesses the likelihood a motorist is illegally using a mobile phone,’’ he writes.

Acusensus technology detects a driver illegally using a mobile phone while a passenger holds the wheel.

“Over time, the Heads-Up solution has been expanded to also provide detection and enforcement of speeding vehicles, seatbelt noncompliance, automatic number plate-based enforcement … and detection of vehicles that are being driven in closed lanes of freeways.’’

The prospectus adds that the majority of its revenues are expected to come from the existing NSW and Queensland contracts – 95 per cent in the current financial year – but it will use the money raised to expand globally.

The company generates revenue from hardware rental and sales, licensing, installation, system operations and maintenance, image review and verification services and “other adjacent enforcement camera services’’.

Acusensus technology deployed in the field.

Acusensus is partnering with Griffith University on technology that can detect drivers who are impaired by drugs or alcohol and is working with Swinburne to develop a warning system for workers operating in potentially dangerous roadside situations.

The company grew its revenues from $6.8m in 2021 to $28.7m last financial year and is projecting $37m for the current year, although it expects EBITDA to drop from $3.7m to $3.1m with a rise in employee numbers and an increase in administration costs.

Acusensus says global revenues in the traffic enforcement solutions market were estimated at $4.56bn in 2021 and are expected to grow at a compound annual rate of 10.7 per cent out to 2026.

The company was founded by Alexander Jannink and supported with seed investment from Indian group Ador Powertron, which will hold 15.41 per cent of the shares post-listing.

Existing investors Gresham Capital and Ellerston Capital will hold 7.7 per cent and 4.9 per cent respectively. Other investors include Anglo Ashanti Gold managing director Alberto Calderon, Melbourne University chancellor Alan Myers and former UBS chief executive Gordon Dickinson. Mr Jannink said with a strong pipeline of projects on foot it was a good time to raise capital to accelerate the company’s plans.

The offer is expected to open on December 8, with Acusensus stocked scheduled to start trading on the ASX on January 12.

The shares will be priced at $4 each, with 5 million new shares on offer, giving the company a capitalisation of $100.5m. Bell Potter Securities is lead manager.

Originally published as Acusensus’ $20m IPO to accelerate global rollout of AI-backed speed camera technology