Market share a focus for hipages ahead of float

Online trade services platform hipages has brought forward its bookbuild for its initial public offering to Monday.

The float of hipages has been met with overwhelming demand — now the company just needs to maintain its market share and earnings momentum in the months ahead after its anticipated listing in November.

As reported by this column on Friday, the online trade services platform has brought forward its bookbuild for its initial public offering to Monday, with fund managers told through a book message that demand for its IPO has exceeded its offer size at the top end of its price range of $2.05-$2.45 a share.

Working on the float is Goldman Sachs, with the group to list with a market value of between $266.5m and $318.5m after undertaking a cornerstone process.

Hipages is looking to raise between $89.1m and $100.4m, with $40m in primary proceeds and $49.1m-$60.1m in secondary proceeds.

The bookbuild was to be held on October 22, with the prospectus to be lodged on October 23. Shares will trade on a normal basis on November 16. The attraction by fund managers to the business is that 90 per cent of its revenue is recurring.

However, like all online trading businesses, the challenge is always keeping competitors at bay and retaining market share, so this no doubt will be a focus.

Meanwhile, prepared-meals provider Youfoodz will move forward with the management roadshow for its IPO on October 26. Advising on the float is Bell Potter and Morgans.

Youfoodz plans to raise about $60m, with its market value to be about $200m.

AGT owns 70 per cent of the business, while founder Lance Giles owns the remainder.

Nationally, Youfoodz has about 10 per cent of the fresh delivered meals market and is growing rapidly. About 60 per cent of its market involves sales to consumers and the remainder is business to business.