IPO Watch: American employee experience tech Limeade lists on the ASX today
Workplace experience software provider Limeade (ASX:LME) is set to join the ASX today after raising $100m at $1.85 per share.
Seattle-headquartered Limeade offers software that helps businesses keep their workers happy. Among other things it measures employee inclusion, engagement and satisfaction.
It also generates action plans and activity recommendations to improve these outcomes.
Over 170 businesses with more than 2.4 million employees between them use Limeade’s solutions. High-profile customers include Kindred Healthcare and the State of Washington public sector.
While the company is not yet profitable, making a net half-yearly loss of $US1.5m ($2.2m), it is forecasting $56.1m in revenue for the 2020 financial year.
Limeade’s listing caps off a big year for foreign listings.
This has been particularly true for tech companies with listings including Silicon Valley-based child tracker Life360 (ASX:360) and Irish insurance software stock Fineos (ASX:FCL) coming to the bourse.
After Life360’s listing in May, the ASX went on a trip to the US to court potential firms to list. A spokesperson for the ASX told Stockhead last week that Limeade was one company the exchange had wooed this year, including on its most recent trip.
Stockhead contacted Limeade for comment.
In its prospectus, Limeade told shareholders there was a large market opportunity for employee experience software. It estimates the US market is currently worth $US8 billion and this doubles if you take into account the rest of the world.
The company noted that an engaged workforce was better for businesses. It pointed to studies showing employees with high levels of engagement led to 20 per cent higher productivity, 40 per cent lower employee turnover and 41 per cent lower absenteeism.
“At Limeade, we believe that employees have more voice, power and career mobility than ever before,” CEO Henry Albrecht, who founded the company in 2006, said.
“Many actively reject toxic, discriminatory, fixed-mindset or command-and-control company cultures. They demand cultures that, put simply, care.
“Without real-time insights into the wellbeing, engagement, retention and performance of their people across the entire employee experience, HR and company leaders may be left to make critical decisions based on limited data.
“At Limeade we believe that employees, HR and company leaders and shareholders all benefit from a coordinated, technology-enabled, caring employee experience. Our employee experience platform and solutions are designed to help scale company strategy and values to every employee, every day.”