Spirit Telecom to float for $2.6 million

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Spirit Telecom to float for $2.6 million

Spirit Telecom has successfully raised $2.62 million through a reverse takeover to list on the Australian Securities Exchange.

The Melbourne company offered 131 million new shares at $0.02 each through the acquisition of publicly listed shell entity Arunta Resources.

The successful deal gives Spirit a market capitalisation of $16.7 million, with the listing expected on 27 June.

According to the most recent available financial results, Spirit Telcom made $4.3 million revenue for the 2015 half financial year ending 31 December, with a profit of $157,442.

Spirit provides internet and telephony services to residential and commercial buildings. Its product range include access to cloud providers such as Amazon Web Services, Microsoft Azure, and cloud services such as MYOB and Xero. It also offers managed services and NBN reseller services. 

According to a document filed by Arunta in January, Spirit supplies services to over 180 buildings in Sydney, Melbourne and Brisbane.

Spirit plans to spend the funds raised from the listing to speed up its product rollout to invest in new building implementations, along with investments in sales, marketing and capital expenditure as it looks to add commercial and residential buildings to its network.

“Spirit is focused on continuing to provide Australian homes and offices, student accommodation and business parks with the fastest ISP and thanks the continued support of its enthusiastic and dedicated customers," Spirit chairman James Joughin said.

“We are pleased to be in the process of transition into a listed company and will continue to work with enthusiasm and dedication in order to reach this key company milestone."

Spirit Telecom becomes the second ICT company to list on the ASX this year, following Brisbane provider Over The Wire, which is on track to rake in $22 million in revenue in 2016.

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