E-learning developer ReadCloud gets an ‘A’ from investors; jumps 35pc on debut
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ReadCloud, an e-learning app developer for secondary school teachers and students, had its first day at ASX big school on Wednesday, getting a tick from investors who pushed its share price up 35 per cent.
The shares open at 22.5c and quickly hit a high of 28c before closing at 27c — a 35 per cent gain on the issue price.
The developer raised $6 million selling shares at 20c.
ReadCloud (ASX:RCL) allows a school’s curriculum to be accessible in one app across multiple platforms and devices, regardless of the school’s choice of publisher. Teachers and students are able to share notes, questions, videos and web links with one another within eBooks.
The software maker went to summer holidays last year with 50 schools signed up — representing 21,800 users — and reckons it can double those numbers in 2018. As the bell rang for the first classes of 2018 it claimed it had added another 18 schools.
“I believe the strategy of further software development and additional sales and marketing staff will position ReadCloud for further growth by targeting the 2700 secondary schools and 1.6 million full time secondary school students in Australia,” ReadCloud chairman Paul Collins said.
CEO and founder Lars Lindstrom, who has a history in tech startups in Denmark — he was one of the first investors in Skype — added: “Our purpose at ReadCloud is to assist schools transition to digital curriculum while delivering software tools that can help make students smarter and teachers better.”