PERTH: Aussie Broadband Limited (ABB) has been admitted to the official list of the Australian Securities Exchange (ASX) following the successful completion of a $40.00 million initial public offering (IPO).
Under the IPO, 40 million shares were issued at $1 a share, which gives Aussie Broadband Limited (ABB) a market capitalisation of approximately $190 million at the offer price.
The IPO was strongly oversubscribed, being supported by existing institutional investors, new institutional investors and clients of the Lead Manager Shaw and Partners.
As part of the Offer, $10 million was provided by customers of the Company, an undertaking that has few precedents and was strongly oversubscribed, closing within 75 minutes of opening.
Aussie Broadband is an Australian owned and operated telecommunications company that was formed in 2008. The Company provides nbn subscription plans and bundles to residential homes, small businesses, not-for-profits, corporate/enterprise and managed service providers.
Aussie Broadband also offers a range of other telecommunications services including VOIP, mobile plans and entertainment bundles through its partnership with Fetch TV.
As a licensed carrier, the Company provides these services through a wholesale agreement with NBN Co, a mix of leased backhaul infrastructure from third parties and its own network equipment.
As at June 2020, the Aussie Broadband provided approximately 243,000 residential nbn connections. In FY20 Aussie Broadband added approximately 112,000 net new Residential connections and generated total revenue of $190.49 million, a 91% increase year-on-year from revenue of $99.65 million in FY19. Today the Company has over 300,000 residential, small business and enterprise customers.
Funds raised from the IPO will be used to execute on the Company’s strategy to strongly grow its customer base and market share by further increasing its marketing spend from approximately $11.22 million in FY20 to approximately $23.79 million in FY21.
This increased spend is expected to add a further 126,000 net new residential customers. Aussie Broadband will further invest in and grow business sales through its new Carbon Portal and expects to generate $338 million in revenue for the current financial year.
Expenditure will also be focused on the roll out of its own dark fibre (fibre optic cable) network. The project is expected to replace 63% of the Company’s leased Backhaul capacity to NBN Points of Interconnect (POIs) and will remove all leased dark fibre capacity currently between capital city data centre sites. The project is due to be completed within two years and have a minimum useful life of 25 years and will improve the Company’s ability to provide redundancy and increase capacity to meet market demand.
Phillip Britt, Managing Director of Aussie Broadband said:“The Company greatly appreciates the overwhelming support of its shareholders, customers and employees throughout the IPO process. This day marks the beginning of the next phase of our journey.”
“Our business has grown strongly over the past three years due to our reputation for providing high-quality internet at home, business and enterprise levels, along with our transparent customer service to ensure our customers have a seamless end to end experience.”
“Our investors are telling us they want to become part of a business that is operating with incredibly strong ethics and values, that is contributing in unique ways to the Australian community and economy, that has a heart and treats its people well. They want to be part of the Aussie Broadband story, as well as see their capital grow with us.”
“We remain committed to growing the Company and continuing to deliver an exceptional customer experience that has allowed the Company to grow so rapidly to date”.