Forrest-backed Swoop’s share price up 150 per cent

Billionaire Andrew Forrest’s first public telco punt delivered a 150 per cent return on day one, but Swoop chairman James Spenceley says it’s ‘just a number on the screen’.

Andrew Forrest’s Tattarang is a 20 per cent shareholder in Swoop. Picture: Keryn Stevens

Andrew Forrest-backed telco Swoop’s stellar listing on the ASX delivered the mining billionaire a 150 per cent return on his first public punt in the growing telco space.

In a reverse takeover deal, ASX-listed shell entity Stemify raised $20 million at 50c per share to purchase Swoop in a $61.4m deal.

Shares in Swoop closed the day 150 per cent higher at $1.25, valuing Mr Forrest’s near 20 per cent stake, through his Tattarang business, at $41.8 million.

Swoop chairman James Spenceley and CEO Alex West at the listing on Thursday. Picture: Supplied

Swoop is made up of Swoop Telecom (formerly Cirrus Communications) and WA-based NodeOne.

Mr Forrest entered the telco space with an investment in Cirrus in late 2019, backing well-known telco entrepreneur and investor James Spenceley, who chairs Swoop, and his brother-in-investment Tony Grist, founder of Amcom and a director of the Forrests’ Minderoo Foundation.

Swoop is positioning itself to be a “challenger” in the internet services sector, mainly against Telstra, by expanding its infrastructure and through acquisitions.

It operates one of the nation’s largest fixed wireless networks with 246 towers across all mainland states and 120 staff.

“The strong listing is a big endorsement for the telco sector and the business and shows that the IPO market is healthy for quality businesses in quality sectors,” Mr Spenceley said on Thursday.

Swoop chairman James Spenceley. Picture: Julian Andrews

“We were delighted with the result.

“But it is just the number on the screen, the work has got to begin in the background.

“I try not to refresh the share price and look at it every five minutes.

“It’s good to know that it’s up but the main thing is we build the business in the background and do that well,” he said.

“We do have a sort of a longer term plan to run to grow this into a really scalable business.”

A day before listing, Mr Spenceley said he was excited about “coming home” to the telco space and about Swoop’s prospects after comparing notes with his Airtasker listing.

“We were 15 times oversubscribed (for Swoop), while with Airtasker, we were maybe four or five times oversubscribed.

“We actually had more demand from Morgans (underwriter Morgans Financial) for Swoop than we did for Airtasker.

“The proof will be in the pudding tomorrow.”

As chair of Swoop, Mr Spenceley will lead a team of former Vocus executives and telco connections, including Amcom founder Tony Grist, Superloop’s Matt Hollis and chief executive Alex West.

The ASX debut of Swoop caps an intense 12 months for Mr Spenceley, who this week also delivered Airtasker’s acquisition of Zaarly.

“Swoop’s listing is great for me because it’s a skill-set I have,” he said.

“Coming back into telecommunications feels like coming home, like an old glove.”

Mr Grist looped in the Forrests.

Mr Spenceley and Mr Grist will have around 6 per cent equity each.

Tattarang chief investment officer John Hartman sent a text message to Mr Spenceley following the debut, congratulated James on the listing.

“We’re very proud to be cornerstone investors in Swoop and looking forward to supporting your continued growth,” Mr Hartman told Mr Spenceley.