DroneShield launches $5m IPO

A US-founded tech company specialising in counter-drone systems has launched its prospectus for a $5 million initial public offering, with plans to list on the ASX by next month.

DroneShield has engaged Patersons Securities for the offering of 25 million shares at 20 cents each to raise $5 million, with oversubscriptions capped at a further $2 million.

The company has developed acoustic detection sensor systems that alerts the user to approaching drones.

DroneShield would be a competitor to the likes of Gavin Rezos’s Department 13 International, which uses cyber security and network applications to take control of multiple commercial drones, capture video transmissions from the drones, and even land them.

DroneShield is targeting utility providers, defence and security agencies, airports, prisons and public event organisers as its primary market.

The business is chaired by Peter James, who is also chair of Macquarie Telecom and aerial imagery company Nearmap.

“DroneShield’s system is one of the few commercially available and affordable solutions to the worldwide threat caused by consumer-grade drones to privacy, physical security, and public safety in a wide variety of environments,” Mr James said.

“The company seeks to capitalise on the existing and expected demand through applying the funds raised under to the offer to expand its executive, sales, research and development and operational/post-sale support teams, invest in research and development, fund ongoing intellectual property, legal, insurance and administration costs and provide working capital.”

The DroneShield board also includes former Australian defence minister Robert Hill and founder and chief executive of 1-Page, Joanna Riley.

The offer will close on June 2, with the company aiming to begin trading on the ASX by June 13.