Perth technology company Velpic has enjoyed a strong debut on the ASX today, with its shares jumping 188 per cent above the pricing of its recent $4 million capital raising.
Perth technology company Velpic has enjoyed a strong debut on the ASX today, with its shares jumping 188 per cent above the pricing of its recent $4 million capital raising.
Its shares closed at 7.2 cents today, compared with its last close at 3.0 cents and, perhaps more relevant, the 2.5 cents at which the company raised $4 million.
Velpic is the latest in a strong of tech companies to complete a backdoor listing, in its case through the shell of exploration company International Coal.
Its stellar debut coincided with another strong run by ResApp Health, which completed a backdoor listing in July.
ResApp's share price jumped 3.4 cents today to close at a record high of 12 cents.
That continued a spectacular gain over the past month, to the benefit of investors who paid 2 cents per share in ResApp's $4 million capital raising.
Velpic's core business is a cloud-based video e-learning platform, which is being marketed across Australia, with plans for an international roll-out to follow.
The platform allows businesses to create their own training lessons and distribute them to staff and contractors, who can access the platform from any location on any device.
Velpic also owns Perth-based brand technology agency Dash Digital.
The company believes it has a first-mover advantage in the Learning Management System (LMS) market, estimated to be worth $US7.8 billion globally by 2018.
Chief executive Russell Francis is one of several tech entrepreneurs who have lived and worked in Silicon Valley but are now pursuing ASX listings as a way of raising capital.
Mr Francis said Velpic has started life as a listed company with a strong and experienced board, supportive shareholders and most importantly, an opportunity to disrupt the large and growing global LMS market.
The board includes former Xero executive Leanne Graham, who was appointed chairperson this week, having originally agreed to join as non-executive director in July 2015.
The company’ potential was highlighted in September when it won the ‘most disruptive CIO/CTO’ category at the Talent Unleashed awards, which were judged by a panel that included Virgin Group founder Richard Branson, Apple co-founder Steve Wozniak and SEEK chief executive Andrew Bassatt.
With an endorsement like that behind him, Mr Francis is aiming high.
“I want to be the first billion dollar software business out of Perth,” he told Business News last month.
