Recruiter Jobstore enters super hot Artificial Intelligence game ahead of ASX listing
Jobstore is the latest aspiring ASX stock to market itself as an Artifical Intelligence investment opportunity.
Malaysia-based Jobstore aims to automate hiring for corporate customers via an “AI powered online recruitment platform” that advertises jobs on 50 different employment sites and automatically recommends the best candidates.
The three-year-old business is asking for $6.6 million to $8 million in an IPO priced at 20c.
Jobstore will be one of about half a dozen similar AI-based companies on the ASX, including Nvoi (ASX:NVO) and HiTech (ASX:HIT).
The IPO will see it valued at up to $34.1 million.
The cash is being used to expand in Australia as well as open the door to capital markets.
At the end of June, Jobstore had $102,200 left in the kitty according to its prospectus. It made $2.1 million in fiscal 2018 but a loss of $868,877 after expenses surged.
The point of difference is that JobStore is based in Malaysia and “aims to be one of the top human capital management service providers” there, as well as in Singapore and Australia.
There are risks peculiar to operating in Malaysia, however, the prospectus says.
“Malaysia has recently had a change of government, which may give rise to changes in government regulation and policy affecting Jobstore Malaysia,” the prospectus says.
“This risk cannot be controlled by the company or the directors.
“There is no assurance that any change that occurs as a result of political, economic or social reforms in Malaysia will have a positive effect on Malaysia’s economic development or that the Group’s operating companies will benefit from or will be able to capitalise on these reforms.”
The company is chaired by Alan Beasley, the founding chairman of pot stock The Hydroponics Company (ASX:THC) who lost a battle for his seat in October last year.
CEO and managing director Anping Wang founded the company in 2014, after launching other recruitment sites in South-East Asia one of which was sold to Monster.com.
The offer opens today and closes on November 13.
The company expects to list in December.