Technology services provider Bulletproof Networks is set to list on the Australian Securities Exchange by the end of the year, under a reverse takeover of speculative mining stock Spencer Resources.
The move will see Spencer Resources acquire 100 per cent of Bulletproof and divest of its mining exploration assets, pending approval from existing shareholders. It said the consolidated listing would take effect from December 23.
Bulletproof provides website hosting and consulting services for 475 clients, including the federal government and major retail chains. It sits in competition with a growing number of global and local players, such as Telstra and retail giant Amazon’s cloud subsidiary.
Chief executive Anthony Woodward said the company had decided to list through an existing public shelf company, after an 18-month review, to keep control of its strategy.
“We’ve been self-funded and cashflow positive for our entire history,” he said. “We wanted to only require a small amount of capital as part of the listing, the other benefit we wanted to take advantage of was a ready-made shareholder register.”
“It’s not really, regulatory-wise, any different from an IPO.”
Shares would be issued to Bulletproof’s six main shareholders, including Mr Woodward and chief operating officer Lorenzo Modesto, who will assume the same roles at the consolidated company, Bulletproof Ltd.
Stephe Wilks, a former executive with Optus and chairman of Eftel before it sold to M2 Telecommunications, will become chairman of the consolidated company.
Once the listing is complete, Bulletproof would issue a $1.6 million capital raising round to meet ASX’s benchmark of $3 million in net tangible assets for public companies.
Where Spencer made a $497,000 loss in 2013 on revenues of $59,000, Bulletproof has seen revenues increase 135 per cent over the past two years to $14.83 million, with earnings before interest, tax, depreciation and amortisation of $2.21 million for 2013.
Bulletproof is the latest in a number of tech companies seeking local listings, after online job outsourcing company Freelancer.com issued a prospectus for a float next month.
Shares in Spencer Resources rose three times to 18c when the market closed on Monday.
The Australian Financial Review