The Nuix Limited (ASX: NXL) share price has surged higher on Friday after completing its highly anticipated initial public offering (IPO).
The analytics software provider's shares are up a massive 47% to $7.80 at the time of writing.
At one stage, the Nuix share price was up as much as 69.5% to $9.00.
Image source: Getty Images
What is Nuix?
Nuix is a leading provider of investigative analytics and intelligence software with a vision of "finding truth in a digital world."
It helps customers from around the world in many different industry verticals process, normalise, index, enrich, and analyse data from a multitude of different sources.
Its software has been used in a number of important investigations over the last decade and a half. This includes the Panama Papers, the Banking Royal Commission, organised crime rings, corporate scandals, and terrorist activities.
In FY 2020, Nuix reported a 25.9% increase in total revenue to $175.9 million. This revenue is largely from subscriptions, with subscription revenues now accounting for 88.7% of its total revenue.
This led to gross profit of $155.2 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $55.5 million.
Looking ahead, in FY 2021, management is forecasting total revenue of $193.5 million, gross profit of $166.7 million, and EBITDA of $63.6 million. This represents growth of 10%, 7.4%, and 14.6%, respectively.
The Nuix IPO.
Nuix was able to raise approximately $953 million through the issue of 179.5 million shares at an offer price of $5.31 per share.
It also raised proceeds of approximately $677.4 million for existing shareholders, such as Macquarie Group Ltd (ASX: MQG), through the sale of approximately 127.6 million shares at the same price.
These funds will be used to repay existing debt and provide funding and financial flexibility to support its growth strategy and future growth opportunities.
Chairman Jeff Bleich commented: "Nuix's growth strategy seeks to expand its presence across geographies and in targeted industry verticals by winning new customers, employing an industry‑centric "land and expand" strategy across industry verticals, continued investment in functionality of the Nuix platform, and improvements in overall operating efficiency and extracting potential benefits of increased scale."
"In addition, Nuix believes that growth can be accelerated by focusing on building a network of strategic partners to provide complementary delivery and market expansion capabilities, as well as through a considered approach to value accretive mergers and acquisitions," he concluded.
