Australian telco United Networks raises $7 million in IPO

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Australian telco United Networks raises $7 million in IPO

Sydney’s United Networks is the latest telecommunications company to list on the ASX following a successful IPO that raised $7.1 million.

Established in 2009, United Networks’ main product is a white-label global roaming service provided to corporate customers such as insurers, airlines, banks and travel agents. The company recently launched a similar white-label product as a wi-fi application, which connects users to 57 million hotspots in 120 countries.

United Networks chief executive Nicholas Ghattas said: "The success of United’s white labelling has come from it being an attractive low-cost customer acquisition program for corporates, as well as offering them a chance to convert this cost into a revenue earner."

“With the launch of the wi-fi app we have streamlined the use of the global roaming product and we expect it to be the basis for its growing appeal among new and existing corporate customers.”

United Networks will list on the ASX today with the code UNL. Shares were offered at $0.20, giving United Networks a market capitalisation of approximately $25 million.

Ghattas said that United Networks will use the $7.1 million raised through the IPO to expand its network coverage to broaden its corporate customer base.

According to the company's prospectus, United Networks generated a total services revenue of $7.5 million in the 2016 financial year and a net profit after tax of $337,000.

United Networks also announced it was looking to deal with a local SIM provider to allow international visitors to access local competitively priced telecommunications products while in Australia.

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