identitii becomes second blockchain company to launch IPO on ASX
Tue, 14 Aug 2018, 09:29 am UTC
identitii, an Australian digital-ID management startup, has become the second blockchain company to launch initial public offering (IPO) on the Australian Stock Exchange (ASX), StockHead reported.
The company is seeking to raise $11 million ahead of a September listing. identitii lodged its prospectus with the ASIC on August 8. According to the IPO details on Equitise:
“Initial Public Offering of 14,666,666 Shares in identitii Limited (ASX: ID8) at an issue price of A$0.75 per Share to raise a total amount of A$11,000,000.”
Established in 2014, identitii has developed its own proprietary product “Serra” – a blockchain-based application that enables secure and trusted exchange of information (such as “Know Your Transaction” information) over financial networks.
“With Serra, identitii has taken the approach of utilising the benefits of blockchain and tokenisation to complement the established payment networks such as SWIFT, the international messaging network that facilitates the exchange of funds between correspondent banks. Serra aims at mitigating the shortcomings of these existing networks, primarily the way by which they share information, rather than trying to replace them,” the company said in its prospectus.
Formally launched in September 2017, Serra is already been deployed by HSBC, initially in India.
Of the $11 million raise, the company plans to dedicate $4 million towards the development and commercialization of Serra and another $4.1 million towards working capital, StockHead reported. The rest will go towards R&D ($1 million), paying for the IPO ($1 million), office fit-out ($640,000) and intellectual property protection ($120,000).
“The funds raised from this IPO are anticipated to be sufficient to ensure that identitii has the funds to continue to develop, deploy and market its products and services over at least 24 months from Listing,” identitii said.
StockHead pointed out that identitii reported a $1.9 million loss on $1.2 million revenue in 2017 and expects a $3.2 million loss from $1.4 million revenue this year. Furthermore, it has 45 potential opportunities in the pipeline “two of which are at an advanced stage”, but is “unable to provide potential investors with reliable revenue, profit or cash flow projections or forecasts beyond the 2018 financial year”.
The offer opens August 16 and closes on August 31. The expected date for ASX listing is September 19.
Kyckr, the first to launch a blockchain IPO on ASX back in September 2016, raised $5.2 million at 20c and is currently trading at 12.5c.
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