Simble lists at 30 per cent premium after a heavily oversubscribed IPO
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Simble Solutions has debuted on the ASX today at a 30 per cent premium following a heavily oversubscribed $7.5 million IPO.
The shares were trading at 26.5c shortly after the 11am AEDT listing, compared to a 20c issue price.
The Australian software provider, which is focused on energy management solutions, said the success of the float reflected the strong demand for energy efficiency solutions for business of all sizes as energy prices continue to soar.
The IPO valued Simble (ASX:SIS) at $17.9 million — and management is holding on to 20 per cent of the register.
Institutions were major backers of the IPO, counting names like Regal Funds Management and Tribeca Investment Partners among the investors.
“We are delighted with the investor support, which is a testament to our capabilities and unique offering,” said CEO Fadi Geha.
“As energy prices continue to increase both in Australia and internationally, the market opportunity for Simble is enormous and we are in a sweet spot to take advantage of the rising demand for energy management solutions.
“We have a clear strategy to rapidly take our products to market in a cost-effective manner by leveraging our long-term channel partnerships.”
The IPO funds will be put towards commercialising the Simble Energy Platform, a software-as-a-service (SaaS) platform with energy meters that can monitor, control and monetise power usage in real-time.
Two-way smart control using IoT enables businesses to remotely manage and automate energy savings.
The number of smart electricity meters used in the developed world are expected to rise to between 60-80 per cent by 2022.
Data is changing the energy market
Mr Geha says data is de-commoditising the energy industry.
“This is a huge opportunity for channel partners across telecommunications companies, utilities, financial and energy service providers to complement their existing products and services mix with real-time energy monitoring,” he said.
“Simble Energy can be used to engage with a channel partner’s SME customers better by identifying areas where they can add value, such as by installing solar panels or other energy-efficient hardware.
“Our software is currently used in Australia as well as the UK, and we are looking to add over 200 SME customer sites per month based on our existing sales pipeline.”
Globally, the market for energy management software was estimated to be worth $US32.4 billion ($41.2 billion) in 2016, according to market researcher Markets and Markets. It is projected to grow at an average annual compound rate of 18.5 per cent, reaching $US76.7 billion by 2021.
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