Home-grown sports technology company Catapult Sports is set to debut on the Australian Securities Exchange before the end of the year via an initial public offering that is expected to raise $12 million.
Despite hosing down rumours of an IPO earlier this year, Fairfax reports Catapult Sports launched its IPO institutional roadshow this week, led by Baillieu Holst and Bell Potter and advised by private equity investor Aura Capital.
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Catapult Sports is reportedly seeking a market capitalisation of around $66 million to help fund its continued overseas expansion.
The investor roadshow is expected to be completed by Thursday, with an IPO prospectus to be lodged sometime after that.
Catapult Sports manufactures wearable tracking devices for elite athletes and has previously raised approximately $10 million from private investors, including Dallas Mavericks owner and high-profile entrepreneur Mark Cuban.
The investment allowed the Melbourne-based company to purchase its biggest Australian rival, GPSport in July.
Janine Cox, senior analyst at Wealth Within, told SmartCompany public listings can be a great way for smaller companies to attract attention and raise capital.
But she says investors should be wary of companies seeking to raise small amounts through a float.
“The general rule is if it is under $100 million it is going to be a speculative and high-risk investment,” says Cox.
Cox recommends investors who are considering purchasing this kind of stock determine ways to manage the risk before putting their money on the table.
“Investors need to think: how am I best going to manage my risk,” she says. “Do research and set a cap of how much you are willing to risk if it goes the wrong way.”
“The higher the risk, the more research and knowledge you need.”
SmartCompany contacted Catapult Sports but did not receive a response prior to publication.
This article was originally published at SmartCompany.