Australian software as a service platform hipages Group Holdings Limited which connects for tradesmen and women with new and existing clients has lodged its prospectus with the Australian Securities and Investments Commission to list on the Australian Securities Exchange via an initial public offering.
It has appointed Goldman Sachs Australia as the sole Lead Manager and Ashurst as the Australian legal adviser.
The company is looking to retail and institutional investors as it seeks to raise about a $100 million based on a price of $2.45 per fully paid ordinary share (Share). That would value the company as $286.8 million with an indicative market capitalisation of $318.5 million.
According to a statement, approximately $40.0 million of gross proceeds will be raised through the issue of new Shares by the Company with the balance via a secondary offer of Shares by existing hipages shareholders.
The company operates a marketplace that matches tradies with residential and commercial consumers and claims its model efficiently resolves difficulties that come with organising and coordinating home improvement and repairs.
Part of the reasons for the IPO is to allow it to offer more extensive services on the platform such as field service management software and other value-added services.
According to hipages Chair Chris Knoblanche said, “Today is an important milestone in our history of growth and innovation. With an average of one job posted every 23 seconds on our platform, hipages has become a leading player in the on-demand tradie economy. An ASX listing will position the Company for further success by expanding our ownership base, building our brand and providing access to capital markets. I am delighted to welcome new shareholders to join us for the next stage of our journey.”
Roby Sharon-Zipser, hipages Co-Founder and CEO, said, ”Part of our corporate DNA is the phrase ‘make it happen’. This next momentous step comes at an ideal time. Not only are we ready as a team in attitude and capability, but we believe our industry is on the cusp of a major transition through technology adoption. A share market listing will provide the means to continue our sector leadership and drive further innovations for tradies and customers.”
On Completion, 89.0 million Shares (representing approximately 68.5% of the Shares on issue) will be subject to certain voluntary escrow arrangements.
Under the terms of the escrow arrangements, and subject to customary exceptions, Escrowed Shares held by Existing Shareholders on Completion, other than those held by hipages’ CEO, may only be sold after the release of the Company’s financial results in FY2021, which is expected to be in August 2021. Those held by the CEO may only be sold after the release of the financial results in 1H 2022, which is expected to be in February 2022.
The company says it will apply to the ASX within the next seven days for admission to the official list and quotation of Shares by the ASX, under the code HPG. It is expected that trading of the Shares will commence on or about 12 November 2020.