They’re not heavy: Shekel Brainweigh floats 14pc on debut
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Shekel Brainweigh, the ASX play of ex-Wentworth Liberal party candidate Dave Sharma, has launched itself into the Australian public company sphere with a 14 per cent stag profit.
The company issued stock at 35c in the IPO but lifted to 40c at its debut on Tuesday afternoon.
The Israeli maker of uber-weighing devices (ASX:SBW) had to delay its original ASX launch date from late October in order to win over more investors.
The company’s corporate advisor said “a number of significant fund managers” had told them they needed more time to commit.
It’s a tough market for small caps to raise money in right now.
Several fund managers and advisors have told Stockhead there is little money available in Australia right now for small caps.
Head of MHOR Asset Management James Spenceley told Stockhead earlier this month that capital markets are effectively closed to companies wanting to raise $5-15m, and particularly for technology and loss-making companies.
Shekel Brainweigh raised $10.5m from investors in Australia and its homeland of Israel, and pitched funds in Hong Kong.
The company has a profitable business selling highly sensitive weighing tech for things like premature baby incubators, but wanted to expand into a more techie space.
They’re using the IPO cash for ‘product aware’ shelving that knows by weight, exactly what is on it — even to the point of knowing whether it’s the whitening toothpaste or the regular you’ve just picked up and put back.
That is fed into software that updates with how much stock is remaining in a store, and how often it’s being moved or sold.
In a blow to supermarket self-checkout thieves everywhere, they say it will be able to distinguish whether that’s an onion or an $8 avocado you’ve just set down.
Shekel Brainweigh made a $1.9m profit last year, and $18.2m in revenue.
It is carrying $4.6m in debt however and had $1.7m in cash at the end of 2017.