Is the word ‘blockchain’ still able to pull an investment crowd?

A Dutch company is about to find out as it launches a $31 million IPO in Australia this month.

Tymlez (ASX:TYM) offers a platform that allows companies to build and integrate blockchain-based technologies into existing IT environments.

Blockchain is best known as the basis of cryptocurrency transactions but it’s increasingly used in other ways such as verifying supply chain data, payments and digital contracts.

The theme spiked in November last year as cryptocurrency Bitcoin headed towards a peak of almost $US20,000 a coin in early December.

A range of ASX-listed companies scrambled to benefit from the excitement, by either claiming they were looking at moving into the space or actually jumping on the train.

There have been recent successful blockchain floats such as Identitii (ASX:ID8) and Security Matters (ASX:SMX).

But other ventures have struggled. Genetic Technologies (ASX:GTG) is still not a blockchain health data company, Chapmans (ASX:CHP) recently sold some of its stake in a Canadian cryptocurrency miner, and DigitalX (ASX:DCC) has faced angry shareholders.

Turning a corner

Tymlez plans to raise $5 million to $8 million for product development and marketing as it seeks to grow in the Asia-Pacific region and the US.

Founders Michael Reh and Reinier Van Der Drift will own 46 per cent after the IPO, via a holding company called Tyhold.

Revenue was flat in 2018 at just under $300,000.

The company was founded in April 2016 so only two full financial year’s worth of financial data is available.

The company made a $1.5m loss in fiscal 2018, up over 3000 per cent because expenses grew as they added offices in the US and Germany.

At the end of June, Tymlez had $661,598 cash in the bank.

The offer closes on November 23 and the stock is expected to list on the ASX from December 7.

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