Business broadband services provider 5G Networks is looking to raise $4 million to $4.4 million through an initial public offering (IPO) that will help it further expand its network.
The company presents itself as an alternative to the NBN, claiming in an announcement that Telstra and NBN had “relinquished a broad service offering” to small and medium business enterprises that are outside of the big city CBD boundaries.
“These businesses will be hamstrung by old tech unless second-tier providers can offer world-class services in tele-data, broadband and cloud,” the announcement read.
5G Networks combines its own wireless network with fibre access, which it claims to have improved access speeds. Its service speeds range from 10 Mbps up to 350 Mbps.
Managing director Joe Demase told CRN that the name was derived from its use of an unlicensed 5GHz spectrum, not the proposed mobile standard.
The company will bundle cloud and infrastructure services through Melbourne-based Enspire Australia, which is set to become a subsidiary of 5G Networks (the acquisition is subject to the successful IPO).
Enspire is a Telstra business partner and a Microsoft tier-one cloud service provider.
5G Networks has access to Telstra’s wholesale network for increased coverage, and is also equipped to support virtual reality and augmented reality needs.
Through Enspire, 5G Network’s services are currently in operation after it was granted a carrier licence on 13 September, and is in the process of building out its network further.
“Melbourne coverage could be completed with eight to 10 base stations at low capital cost,” the announcement read. “Potential coverage is then 80 percent of Melbourne corporates affected by service deficiency.”
The IPO opened on 29 September, selling between 16 million to 17.5 million shares at $0.25 each. The offering will then close on 26 October and will be listed on the ASX on 3 November.
For the financial year ending 30 June 2016, 5G Networks posted revenues of $6 million and profit before tax of $1 million.
Demase told CRN that after the offering and ASX listing, the company will be “aggressively” pushing for more acquisitions as part of its growth plan.
“We have identified a few potential acquisitions which would help grow both the network and the company,” Demase said.