Cyber security play Whitehawk gains 32.5pc in ASX debut
Cyber threat detector Whitehawk, led by a former US deputy director of Naval Intelligence, had a strong ASX debut on Wednesday closing up 32.5 per cent on its offer price.
Touted as the world’s first online cyber security exchange, Whitehawk (ASX:WHK) allows small and mid-size businesses to identify cyber security risks and connect them with appropriate products.
Whitehawk listed on the ASX after raising $4.5 million selling shares at 20c (plus a free attaching option for every four shares). The stock opened at 22c and closed its first day of trade at 26.5c.
The company is based within the so-called ‘epicentre’ of the world’s cyber industry at Washington’s Baltimore Corridor and has its initial target set on the US, estimated to be 80 per cent of the global market.
Theresa ‘Terry’ Roberts leads the company as chair and biggest shareholder. Formerly of the US Naval Intelligence, Ms Roberts co-led more than 20,000 intelligence and information-warfare military and civilian professionals.
AI is at the core of their product offering through their ‘CyberPath Solution Engine’ that helps to match buyers with product offerings that suit their business, sector and budget.
While any business can join the WhiteHawk Exchange, its primary targets are those without chief information officers in the revenue range of $10 million to $2 billion. WhiteHawk says this is a relatively untapped market.
The platform is operational and already generating revenues in the US. It also has a cyber security advisory arm that has signed contracts with the likes of US homeland security and US financial institution, Capital One.
“Our platform has been especially developed to leverage several key trends in the global cyber security market, notably addressing an existing gap in the market by enabling small and midsize companies to learn about their business risks and access cyber security solutions that are easy, affordable, and effective at protecting their revenues and reputation,” Ms Roberts told investors.
The company reported revenue of $US220,000 ($273,000) from advisory services for the year to December 2016. Revenue declined to $US24,000 for the first six months of 2017 as the company focused on its WhiteHawk Exchange.