Australian-based online platform and Software as a Service (SaaS) provider hipages Group Holdings Limited (ASX:HPG) has begun trading on the ASX following the successful completion of an IPO that raised $100.4 million for an implied market capitalisation of $318.5 million.
The IPO received strong demand from a broad range of retail and institutional investors in Australia and New Zealand. News Corp Australia will be the largest shareholder in the company with a 25.7% interest. It did not sell any shares under the Offer and remains a committed and supportive strategic investor in hipages.
Approximately $40.0 million in gross proceeds was raised through the issue of new Shares by the Company with the balance via a secondary offer of Shares by existing hipages shareholders.
The net proceeds will be used to drive future growth through investment in the company’s brand and technology platform as well as expansion into new channel and adjacent opportunities.
Chair Chris Knoblanche said hipages specialises in connecting tradies with residential and commercial consumers.
“We believe hipages has a significant role to play in improving the engagement of Australians with a wide range of trade services.
“My fellow directors and I are delighted to welcome our new shareholders to the register and thank existing shareholders for their ongoing support, as we embark on the next phase of our journey.”
hipages Co-Founder and CEO Roby Sharon-Zipser said that with 1.4m jobs posted to its platform in FY2020, hipages is the leading online platform connecting consumers and tradies in Australia.
In its prospectus, hipages forecasted FY21 total revenue of $53.9m, 15% higher on the prior year and recurring revenue growth of 20%.
Strong Q4 FY20 revenue trends have continued into the 2021 financial year with Q1 FY21 total revenue of $13m, increasing by 17% on Q1 FY20 and recurring revenue growth of 24%. hipages is pleased to report that October revenue growth has continued at similar levels.
