Perth-based Veris has revealed plans to demerge and publicly list its telecommunications business, Aqura Technologies, following a strong year of growth and significant contract wins.
Today, Veris said that, after completing a strategic review of subsidiaries Aqura Technologies and Veris Australia, it concluded that standalone and separately listed entities would simplify the group's structure and better position its businesses in accessing capital.
Veris, which established Aqura in 2017 when it renamed its communications division, said the subsidiary was well positioned to list on the ASX, following strong year-on-year growth, significant contract wins, and a record work-in-hand position.
Aqura has been contracted to deliver technology services by the likes of Fortescue Metals Group, BHP, Roy Hill and Santos, earning at least $8 million in contracts since the start of the year.
Most recently, it was tasked with upgrading in-room Wi-Fi and providing managed support services to a number of BHP accommodation villages.
The business has also delivered services to ATCO, Bunnings and Cubic.
Aqura generated $11.2 million in revenue in the six months to December 2020, up 7 per cent on the same time in 2019 and accounting for about 22 per cent of Veris’ total revenue.
The group has not yet disclosed the date of Aqura’s proposed ASX listing or the value of its initial public offering, but said Veris shareholders would be prioritised in the raise.
Chairman Karl Paganin said the proposed demerger was a timely and considered decision.
“We have recognised the different pathways and capital requirements that are emerging for both Veris Australia and Aqura,” he said.
“As a board, we are proud of the continued success that the team at Aqura has achieved over the past six years and are excited to be part of the next phase of its corporate development.
“We are always looking for the optimal structure to enhance shareholder value and we believe this process will deliver exactly that.”
The spinout is subject to final consent from the Veris board, as well as regulatory and shareholder approvals.
Veris said it would release further details of the proposed ASX listing and capital raising in due course. It hopes the demerger will be completed before March 30 next year.
Shares in Veris were up 1.5 per cent at 1:24pm AEST to trade at 7 cents.