Perth-based telecommunications provider, Vonex, has revealed expectations to raise $7 million in a new initial public offering (IPO) that is now live on the Australian Securities Exchange (ASX).
This is not the first or second time Vonex has made an attempt at a public listing. In July 2015, the company tried a back door listing through a reverse takeover of Aleator Energy Limited (ASX:AWD).
At the time, one of the three Vonex's businesses, the telecommunications, was generating $400,000 per month.
In December 2015, AWD proposed to be renamed as Vonex Limited and offered 111,111,111 shares at a $0.045 per share, hoping to raise $5 million.
However, after being questioned by the ASX over matters concerning its capital raising, ASX determined the company to be removed from official listing on 12 April 2016.
In September 2017, Vonex announced intentions to raise $8 million in its replacement prospectus with the National Stock Exchange of Australia (NSX), a stock exchange based in Sydney.
The company said an NSX listing would provide access to Australian and global capital markets and subject it to improved transparency and a robust corporate governance environment.
The company indicated at the time that it might've required additional financing on top of the IPO, as it had operated at a loss for the previous three financial periods with losses totalling $20.68 million. It was also carrying $3 million in net liabilities.
According to the company former director and current CTO, Angus Parker, Vonex raised enough money to list on the NSX, but following some reservations from some institutions the company decided to check back with the ASX to see if they could list this time around, using the ticker VN8.
Following the submission of an in principle application, which returned positive, Vonex withdrew its NSX application returning all the money raised and went on to try with the ASX.
Parker told ARN that the company would "much rather" be on the ASX and that the parties that had bet on the company during the NSX prospectus were coming on board with the ASX IPO.
Matthew Fahey, who was a commercial director with the company has now stepped in as CEO while Parker is focusing on product development.
"This will be different because there were some school boy errors made by the pervious directors that since have been removed from the company," Parker told ARN. "We've got a fantastic board with high level of skills, we've underwritten for $5.5 million today the minimum raise is $6 million and we are in a very positive and strong position."
Parker said that the company counts on high skill sets and that even during the listing issues the company had seen positive results. Vonex has three main businesses including wholesale, telecom and development and engineering.
"Even during that period we were having exceptional year-on-year growth and the business has excelled and given us time and opportunity to bring on some powerful, influential and strong board," Parker told ARN.
The IPO was opened on 28 March and will close on 13 April, with the company expecting to start trading on 26 March under the ticker VN8.
Vonex is issuing 35 million shares at $0.20 price per share. The minimum subscription is $6 million
The audited revenue results of the wholesale and retail telecommunications divisions reported $3.4 million for retail covering the half year ended 31 December 2017 and $530,000 for the wholesale division covering the half year ended 31 December 2017.
The audited revenue results of the Wholesale and Retail telecommunications divisions reported $6.12 million for retail covering the financial year ended 30 June 2017 and $1.16 million for the wholesale division covering the financial year ended 30 June 2017.