IPO Watch: US computer hardware maker Revasum launches $31m float ahead of ASX listing
Computer hardware maker Revasum has launched initial public offering to raise up to $30.7 million ahead of an early December listing on the ASX.
Revasum makes machines that builds computer chips used in sensors, LEDs and other components for devices such as mobile phones.
“The systems that Revasum manufactures are an integral part of the production chain in manufacturing processing wafers sized 200m and below,” the prospectus says.
If successful, it will be one of a handful of ASX-listed “semiconductor” companies — companies that make computer chips.
A couple of months ago, Stockhead outlined a small group of companies making chips and electronic components, finding them to have risen in share price value, on average, by about 15 per cent.
Among them were Pivotal Systems (ASX:PVS) and BrainChip (ASX:BRN), both of which are related to Revasum (see below).
Pivotal had a strong debut on the stock exchange after raising $53.5 million selling shares at $1.86 a pop. It’s now trading around $2.25.
Revasum and Pivotal are both backed by the same Silicon Valley investment fund, Firsthand Technology Value Fund (NASDAQ: SVVC), which participated in the pre-IPO funding round along with company chief executive Jerry Cutini and a number of high-profile semiconductor industry veterans.
Firsthand will hold 58 per cent of Revasum after the float — though the company will be subject to an 80 per cent shareholder approval requirement on major decisions.
After the IPO Mr Cutini will hold just under 5 per cent of the company and earn a salary of about $380,000 a year plus a potential $762,000 bonus if the company meets certain objectives.
Revasum senior vice president Ryan Benton — who is also on the board of Pivotal and until September was the CFO of BrainChip — will hold 3.5 per cent of the company.
He’ll be paid about $346,000 a year plus a potential bonus of $693,000.
Revasum posted a $640,000 loss for the 2018 financial year but is forecasting a $3.5 million profit for 2019.
Revasum says the money raised will be used to invest in new product development, company expansion and working capital.
It’s eyeing an indicative market cap of $153 million, and will have 92.1 million shares on issue when the offer is completed. It plans to begin trading on December 6 under the ASX code RVS.
The offer is managed by Shaw and Partners and Moelis Australia. You can view the prospectus here.