IPO Watch: US tech high-flyer Revasum heads down under for pre-float capital raise
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Special report: US tech high-flyer Revasum, which makes machines that build computer chips, is heading to the ASX following a successful pre-IPO capital raising.
Revasum — which has so far raised more than $US8 million — follows the successful float of Pivotal Systems (ASX: PVS), which is also in the computer chip manufacturing business.
Pivotal had a strong first day on the stock exchange last month after raising $53.5 million selling shares at $1.86. The stock has since climbed 60 per cent to a near record high today of $2.97.
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.
The rest of the $US8 million was raised from Australian institutional investors including Perennial Value Management, Washington H Soul Pattinson and Acorn Capital.
Revasum makes the equipment that makes the microchips used in mobile phones, cars, LED lighting and “Internet of Things” devices.
It markets to the world’s leading consumer electronics, telecommunications and car manufacturing businesses.
Revasum’s chief executive Jerry Cutini, a 35-year veteran of the semiconductor equipment industry, says the ASX appeals because of geography and philosophy.
“The beauty of what Revasum does is that we sell to the supply chain that supports some of the world’s biggest companies that everyone knows about.
“About 75 per cent of our customers are outside mainland USA. Most of our customers and suppliers are in Asia, so it makes sense for us to be in the region.
“Additionally, the ASX is very supportive of growing, technology companies of our size with a global presence, and we are excited to explore the role that the ASX can play in supporting our growth.”
Mr Cutini brings an impressive track record of success to Revasum.
Apart from listing two companies on the Nasdaq and raising more than $US250 million for public and private companies, he’s completed significant merger and acquisition transactions and has sold nearly $US1 billion of companies.
He is also a member of the North American Advisory Board of trade association, Semiconductor Equipment and Materials International.
Revasum will use the pre-IPO funds ramp up its sales pipeline (it already has significant orders in-hand), hire more sales staff and invest in product development.
David Kells of Shaw and Partners, which led the pre-IPO funding round, said: “More cars are being electrified, networks are moving to 5G, and more people are using more connected devices.
“Revasum makes the equipment which produce the microchips driving these mega-trends.”
“Companies like Revasum provide Australian investors with exposure to these large, high growth industries that are otherwise hard to access.”
This special report is brought to you by Revasum.
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