Norwood, Flexiroam debut on ASX

16/06/2015 - 11:54

Two telco companies that provide roaming services have begun their first day of trading on the ASX today, with Norwood Systems making solid gains while Flexiroam closed flat.

Norwood Systems chief executive Paul Ostergaard.

Two telco companies that provide roaming services have begun their first day of trading on the ASX today, with Norwood Systems making solid gains while Flexiroam closed flat.

Norwood, which was recently acquired in a backdoor listing by Monteray Mining Group, gained 2 cents to 3.1 cents a share after reaching a high of 3.4 cents.

The company has developed two cloud services platforms, which reduce mobile phone voice roaming charges by over 70 per cent for travellers, bridging the gap between low-quality free voice services and expensive telecom international roaming charges via sim cards.

Norwood recently raised $5.5 million in an oversubscribed share offer, with strong institutional and retail participation.

“Today marks a new and exciting day for Norwood Systems as a listed technology company,” chief executive Paul Ostergaard said.

“What we have developed is a shared economy business model, delivering premium service at a lower cost, with our unique cloud services platforms.

“The company is now well positions for significant value creating with strong funding secured, negotiations well advanced for commercial contracts with a number of blue chip corporates and the launch of our revolutionary World Phone consumer app planned in the coming weeks.” 

Azure Capital was lead manager to Norwood’s prospectus.

Meanwhile, rival service provider Flexiroam has also commenced its first day of trading on the ASX after closing its prospectus to raise about $9.5 million.

Flexiroam hoped to raise a minimum of $8 million and a maximum of $12 million at 20 cents a share.

Its shares closed flat at 20 cents.

Flexiroam is chaired by Perth lawyer Adam Sierakowski and has its principal place of business in Malaysia.

Flexiroam, which has been growing as a roaming service provider in Asia, is also seeking new investment through its IPO in the hope of raising its profile and continuing its growth as a global roaming provider.

Chief executive Jef Ong said the successful listing was a new chapter for the company.

“We can now replicate our successful business model across Asia with a more aggressive approach,” Mr Ong said.

“By increasing awareness about the company’s capabilities, we hope to show investors the broad value and potential of the services we provide.”

The company’s core products include its Flexiroam Roaming Pass and its Flexiroam sim cards, which allow travellers to use their local numbers with unrestricted voice and data access at their destination of choice.

Trident Capital acted as corporate adviser to Flexiroam, while Price Sierakowski Corporate acted as legal adviser.

Patersons Securities acted as lead manager to the prospectus, while HLB Mann Judd acted as investigating accountant.

 

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