Eight-company mega-merger Trimantium GrowthOps debuts on the Australian Securities Exchange (ASX) today after finalising its $70 million initial public offering.
The listing pulls through after reopening the IPO last month due to funding delays, which the company said was due to issues with money from a foreign investor clearing in on time.
The company missed its 6 February settlement deadline as a result, pushing the IPO to 12 March and releasing a supplementary prospectus on 12 February.
The merger combines enterprise cloud and software provider 3wks, Asia-focused IT consulting firm Digital Moshi and mobile app developer Jtribe with five other digital, marketing and training companies.
“Through the IPO, 15 entrepreneurs have merged their eight successful, specialist businesses to create GrowthOps,” GrowthOps managing director Phillip Kingston said.
“Our clients want a single, accountable, execution partner spanning creativity, technology and leadership to solve complex challenges and develop new products, services and growth strategies.”
The combined company aims to pursue the “evolving” and “fast-growing” business transformation services market, particularly the “converging” industries of management consulting, technology, and advertising and creative.
Kingston added that since the IPO was announced last year, the companies involved had continued to deliver “strong” operational performance for their clients and maintained momentum towards the merger.
“The convergence we’re witnessing is a result of both client demand for a single accountable partner and consumer demand for technology-enabled products and services,” GrowthOps board chair Dominique Fisher said.
“The alternative to engaging GrowthOps is for our clients to coordinate a myriad of individual specialist firms, many of which aren’t structured to share risk and return with their clients.”
The five other companies to join the tech firms in the merger are digital marketing provider KDIS, creative agency AJF Partnership, coaching provider Institute of Executive Coaching and Leadership (IECL), content creator Khemistry and graphic design firm Voodoo Creative.
Ahead of the IPO’s completion, Digital Moshi rebranded to Trimantium GrowthOps in mid-2017 and started trading in Asian markets, while Kingston’s KDIS also rebranded.
The $70 million IPO values the company at an estimated $143 million on a fully diluted basis, with an estimated $95 million market cap.
Revenue and net profit after tax are also expected to be in line with the prospectus forecast of $61.3 million and $9.8 million, respectively.