ADVANCED Nanotechnology, arguably the biggest commercial spin-out from a Western Australian university, has launched a $9 million initial public offering. The IPO values the eight-year old company at $33 million.
ADVANCED Nanotechnology, arguably the biggest commercial spin-out from a Western Australian university, has launched a $9 million initial public offering.
The IPO values the eight-year old company at $33 million.
Chairman Harold Clough describes Advanced Nano as one of the first Australian companies operating in the nanotechnology sector, which relates to materials optimised at the nanoscale (one billionth of a metre).
The company has already spent $18 million developing its technology, using money raised from South Korean company Sam-sung Corning, private investors and government START grants.
It currently has four products in the market, in the areas of sun-screens, cosmetics, industrial coatings, and fuel catalysts.
Its best-known product is the transparent sunscreen ZinClear, which is also used in a range of products launched by supermodel Megan Gale.
Advanced Nano’s technology dates back to 1987 when Dr Paul McCormick, now chief executive, commenced a research program in the mechanical engineering depart-ment at the University of Western Australia.
A key milestone was the formation in 2000 of an R&D joint venture with Samsung Corning to commercially develop its proprietary manufacturing process, which it believes is superior to alternative nanopowder production processes.
Advanced Nano started commercial production in Welshpool in 2002 and in July 2004 reached the goal of scaling the manufacturing process to production scale.
Sales to customers totalled $863,000 in 2004 and the company says it is working to develop new markets for its existing products, as well as new ‘nanopowders’ for use in areas such as pharmaceuticals and advanced ceramics.
Dr McCormick said one of the main reasons for the IPO was to fund expansion of the company’s manufacturing facilities.
“There are four products that we are now manufacturing and sales are growing in all four of those products,” he said.
Dr McCormick said Advanced Nano was also purchasing the assets of its R&D joint venture, via the transfer of a 50 per cent interest in its manufacturing technology to Samsung and a cash payment of $1 million.
The IPO, underwritten by Sydney broker KTM Capital, will also be used to fund the development of new products and new business opportunities.
The largest shareholder after the float will be UWA, with 48.3 million shares worth $9.7 million (at 20 cents per share).
This follows the sale by UWA of 8.4 million shares last year, when the company completed two private capital raisings.
Under the university’s intellectual property policy, the proceeds from share sales will be shared with the staff that developed the original technology.
Other substantial shareholders in Advanced Nano will be Mr Clough (4.9 million shares), Dr McCormick (3.5 million shares) and Samsung.
Dr Andy Sierakowski, director of UWA’s office of industry and innovation, said the success of Advanced Nano was a very positive development.
“It’s a technology the university has nurtured with the company over the past eight years,” Dr Sierakowski said.
“It also shows how long it can take to get a new technology off the ground and develop markets for it.”
Dr Sierakowski said the university was committed to commercialising intellectual property but recognised it was not always the best organisation to pursue that goal.
He added that the university’s primary goal was not the level of profit on its commercial ventures, but its ability to get the technology into the market.
