AltoStratos Holdings Limited, an Australian omni-channel global IT firm, on Thursday announced that it is seeking to raise A$25 million ($17.9 million) in a public listing on the Australian Stock Exchange (ASX).
The company is offering 62.5 million shares at an offer price is A$0.40 per share with a minimum share subscription of A$16 million representing the issuing of 40 million shares at A$0.40 per share.
The initial public offer (IPO) is opened for subscription to institutional, Chairman’s List, and retail investors. The expected first trading date for the stock to list on the ASX starts on March 05 2019.
AltoStratos Group is focused on IT and consumer electronics market within the Asian-Pacific region. The company assists global IT brands in overcoming B2B and B2C supply chain and routes-to-market (RTM) challenges.
AltoStratos Holdings Limited has wholly owned subsidiaries in Singapore, Thailand, and Malaysia.
AltoStratos Group plans to use the IPO proceeds to expand its operations in China, South Korea, Indonesia, the Philippines, Vietnam and Myanmar. It also seeks to expand its pan-Asian offering into the Australian market by building and operating fulfilment centres in Australia.
The company’s executive team is led by the CEO and managing director Lee Yuen Wai, who is supported by Punya Tephassadin Na Ayudhaya, Executive Director.
Lee Yuen Wai is also the co-founder of the company, and has had held senior executive roles in numerous listed and unlisted technology companies across Asia. He served as an executive deputy chairman of a Singapore SGX-listed company from 2005 and 2010, and in 2007 to 2009 was an executive director of a Malaysian IT manufacturing company listed in the Kuala Lumpur stock exchange.
Lee is also the managing director of a venture capital firm called Fortune Capital Management Pte Ltd. The VC firm has invested in more than 50 technology companies in Singapore, Hong Kong, Taiwan and Silicon Valley in the United States. Some notable investments included Focus Media Holdings Limited, Taiwan Semiconductor Manufacturing Co., United Microelectronics Corp, and others.
Summary financials
Source: Company prospectus
The company’s total gross revenue declined by 30 per cent in FY 2018 to A$12.2 million due to management’s strategic decision to discontinue certain product lines and reduce reliance by Digiland on lower margin/higher volume product lines by refocusing instead on higher margin/lower volume product lines.
Its gross margins increased slightly to 7 per cent (A$857,000) in FY 2018 from 6.5 per cent (A$1.2 million) in FY 2017 as a result of its strategic shift in selling higher margin products to replace the lower margin/higher volume product lines that were discontinued.
However, despite achieving a higher gross margin percentage of 7 per cent in FY 2018, the company is still making a net loss after tax of A$3.3 million in FY 2018 from a net loss after tax of A$2.6 million in FY 2017.
The company has A$578,000 in cash and cash equivalents with no significant interest-bearing debt as of June 30, 2018, and is in net cash position of A$9,000. The company’s net cash from operating activities (CFO) slightly improved to minus A$739,000 in FY 2018 from minus A$999,000 in FY 2017.