FOS Capital rallies ahead after passing its first IPO test

Recent IPOs, such as Nuix (ASX:NXL) and Peter Warren (ASX:PWR), have shown a company’s first trading update post-listing is critical and lighting company FOS Capital (ASX:FOS) appears to have passed.

FOS Capital is one of the smaller companies to have listed in 2021 with a market cap of under $10 million (even with today’s share price spike).

After initially retreating on debut, its shares recovered a substantial amount of lost ground after announcing several metrics depicting the past year was a success.

Its sales were $8.1 million, up 47 per cent, and profit before tax (excluding IPO costs) was $1 million.

The company also reported a 164 per cent increase in its order book, a 147 per cent increase in active quotes and 92 per cent rise in employee numbers.

FOS Capital also won a number of major projects – including the Prince of Wales Hospital in New South Wales and the under-construction Ritz-Carlton in Melbourne – and became the exclusive distributor of Pixon’s Premium X series LED display screens, which are used to power outdoor and indoor signage.

The company concluded its update saying the outlook was positive.

“With our ASX listing bedded-down, [recent acquisition] JSB fully integrated and our financial metrics all heading in the right direction, we believe that FOS is very well-placed to build on all of these strengths,” it said.

“We intend to acquire more businesses that can deliver synergies to our company, and that can in turn, deliver EPS (earnings per share) growth and compelling returns to FOS shareholders.”