19/04/2010 - 15:43

Mobilarm aims for ASX listing again

19/04/2010 - 15:43

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Perth marine safety company Mobilarm is aiming for second time lucky as it prepares to launch its $4 million initial public offer later this week.

Mobilarm aims for ASX listing again

Perth marine safety company Mobilarm is aiming for second time lucky as it prepares to launch its $4 million initial public offer later this week.

The company will offer 20 million shares at 20 cents each in its IPO, which is due to open on Friday.

It is the company's second IPO in less than a year after technicalities prevented it from listing in the Australian Securities Exchange earlier this year.

Mobilarm had raised more than $5 million in the first IPO however all of the funds had not cleared by the ASX-required three month window. The company refunded the subscriptions.

Chief executive Lindsay Lyon told WA Business News the company did not need to raise as much money in the second IPO as Mobilarm had raised $3.5 million in a private placement in the March quarter.

He added he was very confident that Mobilarm will be able to raise the $4 million, with the company now offering a different value proposition as compared to the first IPO.

Mobilarm develops and sells a range of marine safety solutions that can prevent fatalities in man overboard situations.

Last week, the company was awarded a contract to provide personal locator beacons and engineering services to the US Navy. The contract is initially worth $US400,000.

Mr Lyon said the contract win could open opportunities for Mobilarm to market products to NATO countries.

In addition, Mobilarm will this month start manufacturing its products in high volumes through a contractor, which has manufacturing warehouses around the world.

Mr Lyon said that should the US Navy require its products from Mobilarm to be manufactured in the US, it can easily accommodate for that.

In its latest prospectus, Mobilarm said it would use the funds raised from the IPO to drive organic growth by broadening direct and indirect international sales channels, modifying existing products to meet specific needs of the defence market and pursuing strategic acquisitions.

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