The Cluey Ltd (ASX: CLU) share price has landed on the Australian share market on Wednesday following the completion of its initial public offering (IPO).
In morning trade the education technology company's shares were up as much as 12.5% to $1.35.
Since then the Cluey share price has given back these gains and is trading roughly flat at $1.21.
The Cluey IPO.
This morning Cluey became the latest company to complete its IPO when it raised $30 million at an offer price of $1.20 per share. This gives it a market capitalisation of approximately $143.5 million.
Management advised that its IPO was well supported by reinvestment from existing shareholders and a range of new institutional and retail investors. This led to applications exceeding the offer size multiple times.
According to the release, the company intends to use the proceeds to fund its growth strategy. This involves growing its student enrolments as well as exploring further product, channel, market growth opportunities and potential strategic acquisitions.
What is Cluey?
Cluey describes itself as an innovative edtech company. It integrates personal tutoring with its scalable technology platforms and utilises data and learning analytics to support the delivery of quality learning to thousands of Australian students.
Since launching in July 2018, the company has delivered over 192,000 learning sessions and is growing strongly. It delivered 52,700 sessions in the first quarter of FY 2021, up 338% on the same quarter in FY 2020 and up 41% compared to the prior quarter.
In addition, its strong growth has continued in October and November with 38,000 sessions, up 261% compared to the same period last year.
Cluey's Chief Executive Officer, Mark Rohald, commented: "Our listing is a significant milestone for our company. We're excited about delivering our next phase of growth and we welcome our new investors on this journey."
"We continue to see strong growth in the demand for our services and are accelerating the recruitment of additional customer acquisition personnel ahead of the start of the new academic year in Q3 FY2021, our peak enrolment period."
"A range of new initiatives are on track to be delivered in Q3 FY2021, including small group tutoring for secondary school students, and we remain confident of achieving the FY2021 financial forecasts set out in our prospectus," he concluded.
Cluey is aiming to deliver a 218% increase in revenue to ~$15.5 million in FY 2021. However, it is also forecasting a sizeable $32.9 million net loss, which is more than double FY 2020's loss of $16.1 million.
