5G Networks set to target Aussie SMEs after $4M public listing

5G Networks set to target Aussie SMEs after $4M public listing

Broadband provider, 5G Networks, is setting its sights on the SME market as it wraps up its $4 million public listing

Broadband provider, 5G Networks (ASX:5GN), is set to go public on 17 November after raising $4 million in its initial public offering (IPO), in a move that is set to see the telco player target the local small to medium-sized enterprise (SME) market.

The company was admitted to the official list of the Australian Securities Exchange (ASX) on 15 November, with official quotation of its publicly-traded securities on the exchange set to kick off at 11AM on 17 November.

Based in Melbourne, the telecommunications company, which specialises in high-speed network and cloud infrastructure, opened up its initial public offer to applications from prospective investors on 29 September.

Just weeks earlier, on 17 September, the Australian Communications and Media Authority (ACMA) granted 5G Network Operations Pty Ltd a carrier licence to operate in Australia.

The move came after 5G Networks entered into an agreement in July to acquire 100 per cent of cloud and IT services provider, Enspire Australia, in a deal worth $1.8 million in cash and shares.

Based in Melbourne, Enspire is a Telstra partner and provides IT consulting, end-to-end design, delivery and management services, as well as managed services, hosted desktop and applications, private cloud, colocation data centre services, network access and related services, and voice and telephony.

The acquisition of the IT services provider was contingent on the successful IPO of 5G Networks and is set to reach completion within days of the public listing wrapping up.

As part of the public-listing process, 5G Networks published Enspire’s latest financials via the ASX, revealing revenues of nearly $6 million for the acquisition target in the financial year ending June, and a comprehensive post-tax profit of $167,336.

In its updated prospectus, 5G Networks, which claims a channel partner program of its own, said that it is positioning itself as a facilities-based telecommunications and IT operator.

“For this it will deploy, in the geographic markets in which it will operate, its high-speed wireless broadband network in combination with its ICT infrastructure products, on a wholesale basis to ICT-based retail operators with customers in mid-market enterprises, and also direct to mid-market corporate customers."

The company identifies these prospective customers predominantly as SMEs.

It said it will also work with other telcos, such as those players providing fibre-based access, to extend the reach of its own services.

“5G Networks plans to rapidly grow its network, customers and revenue,” the company’s chairman, Albert Cheok, told investors on 16 November. “5G Networks will grow organically by increasing its customer base and partners.

“In addition, 5G Networks will seek growth through targeted acquisitions, commencing with Enspire.

“Enspire is capable of delivering the cloud solutions that mid-market corporations require. 5G Networks itself currently has no customer base or revenue, but Enspire will bring both customers and revenue to the 5G Group,” he said.

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Tags broadbandTelcoTelecommunicationsEnspire5G Networks

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