United States-headquartered cyber security player, WhiteHawk, has opened up its proposed $4 million public offer to prospective investors in its ongoing effort to list on the Australian Securities Exchange (ASX).
The company, which operates a cyber security software brokerage platform dubbed the “WhiteHawk Exchange”, revealed its Australian initial public offering (IPO) intentions earlier this year and lodged its prospectus with Australia’s corporate regulator on 7 November.
Now, the company is hoping to raise at least $4 million through the issue of 20 million shares, with the option of a further $500,000 worth of shares if the offer is oversubscribed.
WhiteHawk’s ultimate goal is to list publicly on the ASX and use the funds from its IPO for engineering and development of the WhiteHawk Exchange platform, which effectively acts as an automated broker for cyber security solutions.
The funds will also be used for research and development, sales and marketing, and for working capital requirements.
Launched in 2016, WhiteHawk began as a cyber security advisory service with a long-term plan to develop a self-service cyber security marketplace designed to match businesses up with the most appropriate cyber security solutions for their needs.
Specifically, the company has developed a machine learning algorithm and an associated artificial intelligence platform designed to let enterprises seek out advice on their cyber security needs and be matched to vendor products, based on their identified needs, via the WhiteHawk Exchange.
“Today, we help US and Australian companies to connect to content, solutions, and service providers through evolving our rich data and user experience,” WhiteHawk said in a statement.
According to the company’s website, its marketplace currently claims more than 40 different vendors, including Symantec, Trend Micro, Sophos, Micro Focus, Kaspersky Lab, Juniper Networks and Fortinet, among others.
“Since WhiteHawk launched in 2016, we have worked hard to develop an easy-to-use platform that will enable small to midsize companies to better understand their vulnerabilities and protect themselves against the ever-increasing cyber threat,” WhiteHawk CEO, Terry Roberts, said.
“We believe that our technology has an incredible amount of potential given the vast number of businesses across the globe who are simply unaware or ill-equipped to deal with online crime and fraud.
Our Initial Public Offering is a significant step forward for WhiteHawk as well as for the cyber security industry. I am very excited to be bringing this opportunity before investors and am committed to delivering growth for WhiteHawk’s shareholders,” she said.
Given how different WhiteHawk’s business model is compared to those of traditional technology distributors, it remains to be seen just how the company’s brokerage platform will affect local distributors and partners that deal with the solutions offered by the vendors already featured on the WhiteHawk Exchange.
However, in an ASX release issued on 22 November, WhiteHawk said it currently earns revenue largely from lead generation agreements with cyber security vendors in the US market, and has won advisory service contracts with a small and growing number of Government agencies.
Its current advisory service clients include the US Department of Energy and Department of Homeland Security as well as a number of medium to large-sized business customers, domestic and multi-national companies based in the US, all of which provide a steady stream of low-level revenue while WhiteHawk’s online sales business model matures.
The company’s Initial Public Offering closes on 5 December.