IPO watch: irexchange wants $17.5m to pull retail into the digital age
irexchange, which describes itself as a “disruptive technology and next-generation business” aimed at improving “fairness, transparency and efficiency” to the retail sector, is raising $17.5 million in an initial public offering.
The company, founded in 2016 and hoping to list in late February under the code IRX, comprises experts from the fast-moving consumer goods, retail, supply chain, marketing and technology industries and will use the funds to further develop its technology and product line, as well as geographical expansion.
“Our platform changes the relationship between retailers and suppliers by removing the costs of conventional wholesalers and providing price transparency to both retailers and suppliers across a wide range of popular stock keeping units in multiple segments in the grocery, frozen, produce and liquor sectors,” chairman Andrew Reeves tells would-be investors in the company’s prospectus.
They hope to lower “operating costs and enable fulfilment through an efficient, technology-driven digital marketplace and supply chain platform”.
The company is eyeing a market cap of $74.3 million if it’s able to raise the full amount from the 19.4 million shares being offered at 90c a pop. It’ll have 82.5m shares on listing.
The company posted a $16.2 million loss for the 2018 financial year, though it uses certain measures not recognised by the Australian Accounting Standards (AAS) and the International Financial Reporting Standards (IFRS). Pro forma full year revenue for 2018 was $13.2m.
Heading up irexchange is Brett Charlton, a former senior executive at Fonterra, Sanofi and PepsiCo. He is paid $400,000 a year and will get a quarter of a million dollar bonus if the IPO is successful.
CFO Brett Coventry and CTO Greg Frye are each paid $300,000. Mr Coventry is eligible for a $100,000 bonus if the IPO goes well.
Leading up the board is ASX heavyweight Andrew Reeves, formerly of Coca-Cola Amatil, Lion Ltd and George Weston Foods. He is paid $120,000. Fellow board members Suzanne Douglas, Ian Hicks and John Ayre are paid $60,000, $54,000 and $42,000 for their respective roles.
The offer is open from January 14 until February 5 and is being managed by Peloton Capital. The prospectus can be downloaded here.