Cloud based business software company, 9 Spokes, has listed on the ASX. Following the successful completion of its initial public offering (IPO), 9 Spokes (ASX: 9SP) commences listing on June 9, at 12pm AEST.
Under the IPO, a total of 125 million new shares were issued at $0.20 per share and the company has raised a total of $25 million. The 9 Spokes IPO did not incorporate any sell-down by pre-existing shareholders.
Prior to the IPO, $11.4 million was invested into the 9 Spokes platform through a series of private funding rounds.
In addition, it said about 47 per cent of the shares on issue following the IPO will be subject to escrow for varying periods of time. The majority of shares held by directors and founders will be subject to escrow for 24 months from the date of listing.
Early stage New Zealand investors demonstrated their long-term support and have contributed a considerable amount towards the funding, with Australian and Asian institutions also demonstrating their significant support.
The proceeds of the IPO are predominantly for ongoing software and technical development.
9 Spokes co-founder and CEO, Mark Estall, said the company has a significant product roadmap that ensures ongoing development and systems improvement are in place. The business is focused on launching its platform with its channel partners over the next three months.
“By listing on the ASX, the company achieves two things; we are able to efficiently access growth capital and it streamlines the due diligence process for our channel partners, who to date are all significantly publicly listed companies.
“We’re delighted so many of our first investors are with us on the journey as we begin life as a public company. It is also pleasing to see significant new institutional investors are also now supporting our global growth strategy,” Estall, said.
9 Spokes has also appointed Paul Reynolds as non-executive chairman. Reynolds has been on the 9 Spokes board since September 2014 and takes over from co-founder Adrian Grant, who will continue to drive 9 Spokes’ strategic growth projects.
Reynolds is a CEO, director, investor and advisor to companies in telecommunications, the Internet and technology. He has more than 12 years of public-company board governance experience in Europe and Asia-Pacific.
In addition to his previous role as CEO of Telecom NZ, Reynolds was a member of the board at BT and CEO of one of its largest lines of business, BT Wholesale, as well as heading its global technology and IT functions.
“With the listing of 9 Spokes on the ASX we are delighted to have Paul take the lead of the board as chairman. Adrian and I will continue to drive 9 Spokes’ global growth strategy and work with the team to stand up the significant enterprise agreements that we’ve signed in the past few months,” Estall added.