After a “heavily oversubscribed” $7.5 million initial public offering, Australian software-as-a-service startup Simble has today listed on the Australian Securities Exchange (ASX).
Simble’s main offering is described as “an accounting software solution like Xero, but for energy”: a business-focused real-time energy monitoring software, aimed primarily at small businesses across a range of sectors.
It also provides other SME and enterprise-level services, such as social media analytics, website design, and bookings software.
A portmanteau of ‘smart’ and ‘nimble’, the company was founded in 2009 by chief executive Fadi Geha under the name Acresta, but switched to Simble in 2016 as part of a “rebrand” in preparation to list.
The company announced it would be opening an IPO in late January, and today started trading on the ASX, with shares priced at $0.20 cents each.
Speaking to StartupSmart, Geha says the key thing fuelling Simble’s decision to IPO was the access to capital listing would provide, plus the credibility and “prestige” it brings as the company approaches UK markets.
He says the exposure from being publicly listed, along with the responsibility of constant market governance and compliance, would place Simble well as the company pursues various different channel partners.
“The main usage for the funds will be scaling up Simble’s RnD capacity to address the market needs in Australia and the UK, along with putting people on the ground in both those markets,” Geha says.
Institutional investors showed interest
The founder and chief executive says he was “delighted” with investor’s response to Simble’s IPO, and views the whole process as a significant tick in the box from a personal and professional milestone point of view.
“We’ve got a very experienced board, and we’ve been able to bring on more experience and leadership that a private company wouldn’t otherwise be able to attract,” he says.
“More than ten institutional investors came on for the IPO, and for the size business we are that was a big vote of confidence, and it gives us a very solid share register.”
Simble is not the first Aussie tech company to list on the ASX in 2018, with airport transport startup Jayride completing a $1.5 million IPO earlier this month.
However, some listed tech companies have seen tough times after going public, with market darling GetSwift suspending share trading for nearly a month after questions were raised about its disclosure practices.
While he stresses that he can’t speak for other companies’ listing experience, Geha says he’s always been a “fairly conservative” chief executive with a focus on dotting I’s and crossing T’s.
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“I’ve surrounded myself with an A-team of professional advisors who have come in very handy when walking us through all the compliance requirements. We’re very well positioned to address continuous disclosure requirements,” he says.