Oracle partner, PrimeQ, is on a mission to raise $10 million on the Australian Securities Exchange (ASX), in a bid to kick-off an acquisition-powered pathway to growth.
The company, which anticipates a listing price of $0.50 per share, expects to list on the ASX by early 2018, in an initial public offering (IPO) that is likely to value the Australian-based business at around $50 million.
The move comes after earlier murmurs of a potential mid-2017 listing, with those plans clearly pushed back.
Since its founding just over a year ago, PrimeQ has built its reputation in Australia and New Zealand through selling, installing and supporting Oracle enterprise software via the cloud, and providing long-term annuity protection for its customers.
The start-up has indicated it is eyeing its public listing in a bid to capitalise on the growing business appetite for cloud-based software solutions, while using the funds raised to kick-start a growth strategy focusing heavily on targeted acquisitions.
“Funds raised through the ASX listing will set PrimeQ on the acquisition trail as we seek out new growth opportunities,” PrimeQ CEO, Andrew McAdams, said.
PrimeQ has wasted no time since its launch in April 2016, when former Oracle Australia applications sales consulting senior director, Chris Downie, decided to strike out and start his own thing in partnership with other co-founders.
“Our core focus was in ERP, but we’re now embracing other adjunct Cloud solutions that fit nicely with that,” Downie told ARN in June last year.
“Oracle has a vast portfolio of Cloud solutions so there’s plenty there for us to explore and then down the track we might look at some acquisitions that will complement our capability.”
At its launch, the company’s leadership team included Downie as CTO/ director of Cloud solutions, CEO Andrew McAdams, COO Mike Luyckx, CFO Simon Cohen and director of cloud, annuity and licensing, Andrew Treloar.
In February, Oracle’s former managing director for A/NZ, Ian White, joined the PrimeQ board, in a bid to strengthen the business by delivering a wealth of insider knowledge to the Adelaide-based start-up.
Its board also includes experienced chair and finance executive Jane Yuile.
The company has offices in Auckland, Wellington, Adelaide, Melbourne, Sydney, Brisbane and Perth.
In its first year of operation, the start-up generated multi-million dollar revenue and grew to 100 staff with offices across Australia and New Zealand.
At listing, the company expects to have approximately 200 consultants.
The company has made a name for itself in Australia and New Zealand focusing solely on Oracle Cloud business solutions and services, from financial reporting and procurement through to warehouse management and transport logistics.
PrimeQ’s client list currently includes local and international brands with turnover of betweem $200 million and $1 billion across several verticals, including construction, manufacturing, transportation and logistics, among others.
The company’s clients include a number of recognisable and big-name brands, such as Pacific Brands, Australian Vintage, Parliament of Victoria, Fulton Hogan, Queensland University of Technology and Heinz.
Thus far, PrimeQ’s rampant growth has been funded through two capital raisings, of $2.4 million and $3 million, in a combination of private and offshore investment.
“Each member of our management team has made a significant investment to launch the company. More than 50 of our approximately 100 staff also have a financial stake in PrimeQ,” McAdams said.
For McAdams, PrimeQ’s leadership team set itself a target to list after “bedding down” its return on investment model following its launch.
“Our initial success has resonated strongly in the market,” McAdams said. “This has been driven by our firm belief in PrimeQ’s value proposition and supported by our team’s proven experience in building Oracle businesses from start-up to sustained profitability within a very short timeframe.”
Further, PrimeQ entered the market at a time when businesses are acknowledging the benefits of cloud solutions, according to McAdams, with the company’s focus on its internal skill-set helping to boost its profile.
“PrimeQ has invested heavily to employ the most experienced Oracle professionals in this part of the world. No other software provider can match the deep industry and product knowledge of our team,” McAdams said.
PrimeQ expects to launch its prospectus in February 2018.