The Swoop Holdings Limited (ASX: SWP) share price is having an incredibly positive first day on the ASX boards.
In morning trade, the telecommunications company's shares have more than doubled in value after the successful completion of its initial public offering (IPO).
At the time of writing, the Swoop share price is fetching $1.15, which is up 130% from its listing price of 50 cents.
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What is Swoop?
Swoop is a telecommunications company formed by the merger of Cirrus Communications and NodeOne Telecommunications.
It is a national provider of fixed wireless internet services to wholesale, business, and residential customers. The company notes that the Swoop network is designed and scaled to deliver ultra-reliable, high throughput, flexible telecom network services.
The Swoop IPO
In conjunction with the acquisitions of Cirrus and NodeOne, Swoop successfully completed a fully underwritten offer which raised gross proceeds of $20 million.
Demand for its IPO was exceptionally strong, with the company revealing that it was more than 15x oversubscribed.
Directors Tony Grist and James Spenceley, along with major shareholder Tatterang, showed strong support for the listing. They collectively subscribed for $4 million of the capital raise. Mr Spenceley is the founder of fellow telco Vocus Group Ltd (ASX: VOC).
The company intends to use the offer proceeds for organic expansion of its fixed wireless network and customer base, as well as the potential acquisition of complementary businesses.
The latter could happen sooner than you might think. According to its prospectus, the company is already in discussions with a number of smaller telcos.
Upon listing, Swoop has approximately 169.6 million ordinary shares on issue. Based on the current Swoop share price, this implies a market capitalisation of approximately $195 million.
Trading update
Positively, the combined business continues to perform well. Management advised that its operational and financial performance for FY 2021 is in line with the company's expectations.
This news appears to have gone down well with investors, judging by the performance of the Swoop share price today.
