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Initial Public Offering and/or Floats, IPO / Float Discussion
nipper
post Posted: Sep 1 2016, 10:33 AM
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Recently listed tech listings that have reported and not done well include:

Digital banking platform ChimpChange posted a $7.65 million loss, on revenue of $180,000. (Management describes the ­period as "transformational'', noting that since the company's June relaunch customer take-up has outperformed initial targets.)

DirectMoney, the only ASX-listed marketplace lender, lost $7.9m ($3.8m excluding one-offs) on revenue of a mere $1.2m. (CEO Peter Beaumont describes the year as "one of establishment and significant achievement''.)

1st Available, a portal for booking medical appointments, posted a $5m loss (50 per cent higher) on revenue of $1.98m (up 560 per cent).

Corporate call-recording service Dubber dropped $5.8m compared with the previous $1.8m deficit, "the expected position as the business is in the early stages of commercialisation".

Big data marketing group Invigor extending a previous $100,000 loss to a $2.68m deficit.

Despite recording full-year revenues of $2.3m, Skyfii, which ­offers free WiFi in shopping malls and then taps the customer data, extended a previous $4.8m loss to $5.4m (including $3m of one-off expenses).

Biofuels has been the graveyard sector for investors, with local producer Australian Renewable Fuels falling into insolvency in January.

Mission NewEnergy, the last remaining listed biodiesel play, turned a previous $4.1m profit into a $2.2m loss. Following the divestment of a key facility in Malaysia, revenues dwindled from the previous year's $7.2m to a paltry $42,000.

Obscure investment house Authorised Investments accrued a $248,000 loss on revenue of a single dollar (from bank account interest).

Biologics house Memphasys, which specialises in sperm separation for IVF purposes, describes a "bitter sweet year" hampered by a legal stoush involving an investor in a spin-off company. The dispute has "put a dampener on the overall result and has placed an extra requirement on Memphasys for ongoing litigation funding''.

Immuron, which markets Travelan anti-diarrhoea tablets, shouldn't expect investors to "run" for its shares after reporting a $4.39m loss on revenue of $1.15m.

Prosthetics maker Allegra Orthopaedics reported a $2m loss on revenue of $5m.

Aeeris, which offers severe weather and hazard warnings, extended a $722,000 loss to $1.47m. Revenue climbed 62 per cent to $1.9m.

. . . . . . .

In the resources sector, goldminer and nickel developer Independence Gold posted a $58m headline loss compared with a previous $76.8m profit. The main driver was $65m of costs related to acquiring the Nova nickel project, but the Tropicana goldmine was also off the pace in the second half.

LNG Limited, which is developing the big-ticket Magnolia project in the US, extended a previous $85m loss to $115m. LNG has expensed its chunky Magnolia costs as it goes along, rather than capitalising them.

Having survived its near-death experience after last year's iron ore price collapse, Atlas Iron posted an official loss of $159m, an improvement on last year's impairment-blighted $1.07 billion. But underlying earnings improved to $74m compared with a previous $51m, with $54m generated in the second half.

Stanmore Coal transformed from explorer to coalminer, having bought the Isaac Plains Coal Mine from Vale and Sumitomo for just $1. Stanmore extended a $12.1m operating loss to $19.74m, blaming start-up costs, unseasonal heavy rains and a $13m impairment on another asset.

In the mining services sector, with earthmoving equipment provider Emeco Holdings posting a $225m loss after dropping $127m in the previous year.

Perth-based civil and mining contractor Brierty chalked up a $16.9m underlying loss and a $50m reported loss, compared with a previous $3m profit. Brierty's earnings hole resulted from problems at its North West Coastal Highway project, including unseasonal rainfall.

Recreation vehicle and caravan maker Fleetwood reported a bottom-line loss of $28m compared with the previous $176,000 surplus. Fleetwood also makes manufactured villages and suffered from its exposure to mining.

. . . . . .
Under ASX rules, the 1212 companies with a June 30 balance date have until the opening of trade today to file, or else face suspension. The ASX processes the disclosures and a shame list of no-shows lodged by 10am on Thursday. Only five stocks were suspended for not doing so last year, compared with two in 2014 and five in 2013.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne

Said 'Thanks' for this post: triage  early birds  
 
nipper
post Posted: Jun 30 2016, 10:01 PM
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In Reply To: nipper's post @ Jun 20 2016, 08:49 AM





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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: Jun 20 2016, 08:49 AM
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Posts: 2,816
Thanks: 1067


QUOTE
On Thursday, live animal exporter Wellard (ASX: WLD) issued an update in connection with its second profit warning in six months, which was announced last week.

The company said it now expects its forecast pro forma full yearly net profit after tax to be around the bottom of the $23.5 million to $30 million range advised in its most recent update.

Shares in Wellard closed down 20% for the week and are down 72% since the IPO six months ago

one worth avoiding (was spruiked by the Tier 2 brokers)



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: May 23 2016, 11:42 AM
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QUOTE
The allure of the ASX as an unlikely venue of choice for low-value tech start-ups shows few signs of abating, especially for Silicon Valley players driven from their home domain by the dearth of talent and the loss of control that venture capital financing inevitably involves.

Virginia-based drone detection outfit Droneshield is the latest US entity to chance the ASX back door listing route, with a $7 million raising in progress. It's a well-worn path given Droneshield's Virginian neighbour and fellow counter-drone specialist Department 13 (D13) debuted in January after a $4m whip-around. Other Silicon Valley tech emigrants are the hot-but-now-not recruitment play 1-Page (1PG) and social media content acquirer ShareRoot (SRO).

Criterion gathers there's no shortage of ongoing interest in heading to the Antipodes on the part of the boffins and the spruikers. But there's a ''cloud'' over the sector and we're not talking about software-as-a-service: the ASX's proposals to raise the bar on the size of putative listings. In its current consultative process, hopefully the ASX taps the global views of offshore enterprises that have braved a listing.

Predictably, they caution against quashing the entrepreneurial spirits of the newcomers, but concur more can be done to winnow the legitimate players from the chancers.

"We have seen the effects over the last 12 months of what happens when a sector catches fire on the ASX,'' says ShareRoot chief Noah Abelson. He contends that of the 100 or so new tech listings, "only a small percentage are legitimate companies with a road map, model and vision to get there''.

From your columnist's view, the problem is that they all claim to be within this small percentage. But we can't argue with Abelson's assertion that if the new rules are too onerous, "a lot of the early stage companies that have the potential to be large high growth entities will never get off the ground''.

Having done business with the Singapore, Frankfurt and Nasdaq exchanges, US entrepreneur Dion Sullivan reckons the ASX provides the right mix of rigour and accessibility. Sullivan's listed digital entertainment play Megastar Millionaire (MSM), "a cross between Eurovision Song Contest and America's Got Talent", listed in January after raising $7m.


"The ASX is a perfect vehicle for small emerging companies,'' Sullivan says. "It is a top 10 exchange, it's heavily regulated and stable and with good volumes.'' Having said that, Sullivan is receptive to some regulatory nipping and tucking, arguing our regulators have become bogged down dealing with sub-scale wannabe IPO. "I think a $5m minimum raise is legitimate,'' he says. "Anything below that would be considered to be angel investing.''

But a vaunted raising of the $20m minimum market cap (from the current $10m) looks too harsh: "I would go to a $5m minimum raise on a $15m valuation,'' he says. "A one-to-three ratio makes more sense.''

Droneshield's motivation to list here was not so much about the cheaper cost, but was integral to locating the business to Sydney. "Australia has good talent with the right engineering skills,'' CEO James Walker says. "You don't have the problem with Silicon Valley wages and staff turnover issues.'' He reckons the equivalent boffin is 30-40 per cent cheaper here than in the US.

Walker's not a fan of the bourse's proposed tightening — especially the measure to increase a minimum individual subscription from $2000 to $5000. "I'm a bit disappointed,'' he says. "The prospectus and disclosure laws are already fairly detailed. People are well informed and not treating them as smart investors would be counter-productive.''

As with Sullivan, Vancouver-based Jason Tomkinson has global experience with fundraising, but opted for here after Hong Kong investors suggested the company take a Captain Cook at the local market.

Tomkinson heads the cybersecurity play Zyber (ZYB), which had to pedal hard to raise its minimum required $3m after the tech sector got the jitters in late 2015. Zyber eventually relisted in February through the shell of Dourado Resources.

Tomkinson says the Vancouver exchange has already seen the effect of a rule-tightening regimen, followed by a relaxation that "sucked the last remnants of capital out of a very fatigued capital base.'' He says: "the more we looked the more we saw you guys were doing lots of things right which we weren't in Vancouver, quite frankly.''

One tick for us is not succumbing to the allure of a separate board, which have a habit of becoming irrelevant, for the minnows.

Sullivan suggests ASX and ASIC do more due diligence upfront "to separate the contenders from the pretenders'' and expedite the listing process. He also counsels them to invest in some digital expertise "to ask the harder questions of American companies trying to do what we did''....

Zyber's Tomkinson says while his company managed to raise $3m through the back door, the process was harder than envisaged. A key lesson was handling the expectations of the ''acquired'' shell shareholders, who expected things to happen faster than management could deliver. "Part of the challenge of doing a backdoor listing is you are buying a set of investors,'' he says. While Tomkinson discovered local investors demand a higher level of communication and disclosure, "frankly, I would do it again.''

Meanwhile, Megastar's Sullivan found dealing with the ASX in Perth was "notoriously difficult" but ultimately the process was easy enough. Undeterred by the road humps along the way, he's pondering another reverse takeover after the ASX's new rules become clearer
The Australian



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: May 18 2016, 08:46 AM
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In Reply To: nipper's post @ May 13 2016, 03:12 PM

Redbubble RBL - IPO'ed at $1.33 a few days ago, and hit $1.54 .... closing at $1.43 after 2 days on market
QUOTE
Morgans senior research analyst Ivor Ries said it was a "pretty good" opening day for the company, and tipped that it could have substantially further upside. "There are a lot of marketplace companies around the world, and for the purposes of the IPO, Redbubble was priced at a fairly big discount to the multiples others were priced on," he said. "These other companies are trading around 3.7 times revenue for the 2017 financial year and Redbubble is trading at 1.6 times. If they meet their prospectus targets ... there should be some potential for them to trade higher."
there they go; talking about sales, but not expense items

QUOTE
Last year, Redbubble recorded $71 million in revenue and is projecting this to grow to $114.5 million this financial year, and to further climb to $172.1 million in fiscal 2017.

In the next six months the company intends to launch another 20 products and over the longer term intends to increase its product suite more substantially through the use of 3D printing. "We're optimistic about 3D printing as it becomes more commercially viable. The issue has been it would take a long time to do a print," CEO Martin Hosking said. "But we're confident it will open up new areas around jewellery in the short-term."




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 
nipper
post Posted: May 13 2016, 03:12 PM
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Posts: 2,816
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Tech stocks account for just 1 per cent of the benchmark S&P/ASX 200, compared to nearly 20 per cent for the US S&P 500, where five of the ten biggest names (Apple, Google, Microsoft, Facebook and Amazon) operate in the sector. The lack of a substantial tech sector is arguably a key reason the Australian sharemarket has underperformed many of its peers in recent years.

QUOTE
Rick Baker, the co-founder of Blackbird Ventures, thinks " ....good companies that should be listed and priced based on fundamentals will find it hard to do so, or that tech will fall out of favour," referring to the deluge of questionable tech listings on the ASX of late, and the potential for investors to get burned.

Which brings us to Redbubble, one of the "good" companies, at least in Baker's opinion: Blackbird invested in the company in a pre-IPO funding round in March.

Redbubble, which floats on Monday, is not an early stage company. It's been around for a decade, and according to its prospectus has a substantial underlying business, with 1.4 million customers and expectations for $115 million in revenue this year.

The company operates a marketplace where independent artists can sell designs for apparel, homewares and accessories to people, who can order them and get them printed by third-party fulfillers. It takes a service fee on every transaction.

Yet the jury is still out on its ability to make money: the company expects to lose $22 million this year, is forecasting another loss next year, and admits in its prospectus that it might never achieve profitability.

........

Early stage technology companies with little revenue and unproven business models have been listing with such gleeful abandon on the ASX that it now looks like the exchange is going to step in to curtail it.

In a discussion paper released this week, the exchange proposed that companies with a market value of under $20 million or less than $5 million in net tangible assets would be prevented from listing.

In the past two years there have been a staggering 105 tech company floats on the ASX, and 45 per cent of them have involved companies with revenue of less than $1 million. There has also been an explosion in "backdoor" listings, in which dormant mining companies are "acquired" by technology start-ups through a capital raising.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time."
- Dr John Hussman

“If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions.” ― Michel de Montaigne
 


wolverine
post Posted: Jul 11 2013, 09:00 PM
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In Reply To: jons's post @ Jul 11 2013, 06:43 PM

around 18x forecast earnings was enough for me



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TOO MANY CHIEFS

NOT ENOUGH INDIANS
 
jons
post Posted: Jul 11 2013, 06:50 PM
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Is anyone else getting some watermark? Will probably keep this one as a long termer.

 
jons
post Posted: Jul 11 2013, 06:43 PM
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In Reply To: wolverine's post @ Jul 11 2013, 10:36 AM

You did better than me, I sold out for $7.08, was more than happy to see it get to $7. A 25% return in a couple of weeks.

Was never a core holding, still a little unsure of it's future, could do well, but with an improvement in technology from a competitor,
it will be hammered.

 
wolverine
post Posted: Jul 11 2013, 10:36 AM
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There is no thread for VRT (recent float fertility clinic float issued $5.68) so in here it goes I sold mine today @ $7.40



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TOO MANY CHIEFS

NOT ENOUGH INDIANS
 
 


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