The Aussie Broadband Limited (ASX: ABB) share price has had a fantastic first day on the ASX boards.
Earlier today the internet provider's shares were up a massive 122% from its IPO listing price of $1.00 to $2.22.
The Aussie Broadband share price has dropped back a touch since then but is still up 90% to $1.90 at the time of writing.
Aussie Broadband IPO
This morning Aussie Broadband listed on the Australian share market after raising approximately $40 million through a partially underwritten initial public offering of ~40.45 million at $1.00 per share.
The funds raised by Aussie Broadband are going to be used predominantly on the deployment of a dark fibre network. This project is due to be completed within two years and have a minimum useful life of 25 years. Management expects it to improve the company's ability to provide redundancy and increase capacity to meet market demand.
According to the release, the IPO was strongly oversubscribed, being supported by existing institutional investors, new institutional investors, and clients of the lead manager, Shaw and Partners.
Combined with the shares held by existing shareholders and noteholders, this gave Aussie Broadband a market capitalisation of $190.5 million.
Though, given its strong gain today, Aussie Broadband's market capitalisation is now just over $360 million.
What is Aussie Broadband?
Aussie Broadband is an Australian owned and operated telecommunications company competing with Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPG).
It provides nbn subscription plans and bundles to residential homes, small businesses, not-for-profits, corporate/enterprise, and managed service providers. It also offers a range of other telecommunications services including VOIP, mobile plans, and entertainment bundles through its partnership with Fetch TV.
At the last count, the company had over 300,000 residential, small business, and enterprise customers.
In FY 2020 it generated total revenue of $190.49 million, a 91% increase year-on-year from revenue of $99.65 million in FY 2019.
Management commentary.
Phillip Britt, Managing Director of Aussie Broadband, commented: "Our business has grown strongly over the past three years due to our reputation for providing high-quality internet at home, business and enterprise levels, along with our transparent customer service to ensure our customers have a seamless end to end experience."
"Our investors are telling us they want to become part of a business that is operating with incredibly strong ethics and values, that is contributing in unique ways to the Australian community and economy, that has a heart and treats its people well. They want to be part of the Aussie Broadband story, as well as see their capital grow with us," he added.
