The Access Innovation Holdings Limited (ASX: AIM) share price has hit the ASX boards in style today.
After listing on the share market at a price of $1.23 per share, the technology company’s shares are up 10% to $1.39 currently.
They were up as much as 23% to $1.51 at one stage shortly after listing.
What is Access Innovation?
Founded in 2002, Access Innovation is a global provider of technology-driven live and recorded captioning, transcription, and translation services.
Its technology platform combines artificial intelligence and human expertise to deliver speech-to-text accuracy.
Access Innovation is the biggest captioning provider in the Australian market, with clients including major free-to-air and pay television networks.
It also has growing international footprint, with offices in the US, UK, Canada and Singapore. Globally, it provides captioning for nearly 1 million minutes of live and recorded media content, online events, and web streams every month.
Why did it launch an IPO?
Today’s initial public offering (IPO) raised gross proceeds of $65.5 million at a price of $1.23 per share. Based on the current share price and its 144.4 million shares on issue, Access Innovation has a market capitalisation of approximately $200 million.
The funds from the IPO will be used to continue its current growth trajectory, particularly in offshore regions. It will also support the ongoing developments of its technology platform to provide a wider range of services for its customers.
Management notes that the IPO attracted strong demand from domestic and international institutions, retail investors, along with the ongoing support of existing shareholders and employees.
The company’s Chair, Deanne Weir, commented: “We are delighted with the outcome of the IPO and by the strong support shown by both institutional and retail investors. Our listing today on the ASX marks an important milestone for Ai-Media, supporting our global growth strategy along with our continued investment in product innovation and our technology platform. We want to help build an inclusive world by making all content accessible to all people everywhere.”
This sentiment was echoed by its Co-founder and Chief Executive Officer, Tony Abrahams.
He said: “We’re all excited by the opportunities ahead of us in a growing global market, by harnessing the power of our high-quality, security-accredited and scalable proprietary technology to deliver great outcomes for our customers and our shareholders.”
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Returns as of 6th October 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.