IPO Watch: SUPA CEO says they’ve got smart and sustainable property services covered

• SUPA has three business arms covering energy, fibre networks and tech 
• The company has completed a pre-IPO cap raise of $9 million 
• SUPA plans to list late CY23 or early CY24

There’s a new unified services provider for urban properties on the block in Smart Urban Properties Australia (SUPA) who’re planning to list late in CY23 after merging a bunch of companies into three business arms.

SUPA brings together b.energy, Fiber Corp, Epsilon Security, Smart Automation Systems and connecX to become three operating divisions:

1. SUPA Energy: A utility provider that funds and optimises energy infrastructure in new and existing properties to enhance sustainability, and provide affordable and easy to use energy services for occupiers;
2. SUPA Networks: A design and integration specialist that builds smart gigabit fibre networks and overlay solutions to provide ultra-fast connectivity for occupiers while supporting in-building technologies on a single fibre backbone; and
3. SUPA Tech: An integration technology partner with a full range of building access control, intercom, CCTV and emerging automation technologies to create smart spaces connected by connecX, a community engagement platforms and app suite.

The company recently completed a pre-IPO capital raise of $9 million, with the funds to provide working capital to grow and deliver SUPA’s contracted pipeline of projects, as the business prepares to list.

A game changer for developers and occupiers

SUPA Group CEO Geoff Horth says the merger pretty much covers all aspects from utilities and communications infrastructure, integrated in-building technologies, platforms and smart-apps for multi-occupant properties.

“The formation of SUPA changes the game for property investors, developers and owners, bringing together a full-range of complementary capabilities and experience to deliver smart, sustainable, and future-proofed properties,” he said.

“Our unique range of converged utilities, communications infrastructure and proptech services focus on increasing property attractiveness and valuation for property investors and providing smarter property experiences to everyone from owners and developers to occupiers and their communities.”

Horth said there’s a lot of waste and cost that goes into building networks to support the TV and building technologies, so by integrated a fibre option as well, it makes SUPA a cheaper and more sustainable option for property developers.

“What we do is effectively build a fibre network that supports both the internet and all the building technology solutions,” he said.

“It’s a cheaper property build, and there’s less waste involved, which is really appealing for developers.”

Smart properties app ties it all together

The company acquired connecX, who’s smart properties app basically integrates with all the various building technology vendors like access control and intercom, to name a few.

“That application for us really brings together our utilities and technology story in that the experience for an occupier in one of our properties.

“If a developer selects SUPA to deliver our integrated services, then the connecX, app delivers a solution for the occupier that allows them to connect their electricity, to pick their broadband plan and provider, but they can also reserve the goods lift for moving day because we interface with the current lift control system.” 

Occupiers can use the app for almost everything – to answer the intercom, to send a guest password to a visitor, to book a shared visitor car space, to book the rooftop terrace, or access the parcel locker. 

“Basically, it brings together all those building technologies plus the utilities that we provide on to a single app, and you can monitor your energy and broadband usage as well,” Horth said.

Long term contracted revenue

SUPA is all about recurring revenues and long-term contracts, with high levels of annuity revenue and a “significant book of contracted growth,” Horth said.

“If we stopped selling today, this business will still be growing revenues in four to five years’ time by virtue of the fact that we’ve got four times as many projects that we’ve contracted to implement as we have currently billing in our platform today,” he said.

“That’s purely due to the timeframe between when you make a sale to a developer, when a property is developed and when people move in.

“Our revenue outlook is very, very positive – just by virtue of the sales we’ve already made.”

And by the time the company IPOs, Horth says they will have well and truly proved the capability of the merged business.

“We think the IPO timeline is either later this calendar year or early next calendar year, so probably post annual reporting season this year or post interim reporting season in FY24,” he said.

“At that point in time, we’ll have another year under our belt, have executed our integration program and we’ll be demonstrating the capability of the merged business.”