RAS Technology (ASX:RTH) share price leaps 6% on IPO. Here's what you need to know

Here are all the details on RAS Technology's float.

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The ASX welcomed another new face today as RAS Technology Holdings (ASX: RTH) underwent its initial public offering (IPO).

The company's shares floated at 11 am AEDT on Tuesday before finishing their first day trading at $1.60. That represents a 6.6% gain on the company's prospectus' offer price.

Let's take a closer look at the ASX newbie and its debut on the market.

But first, what does RAS Technology do?

The RAS in RAS Technology is an acronym for Racing and Sports, indicating the industry in which the company operates.

Racing and Sports is the holding company's main subsidiary. It works to provide integrated premium data, enhanced content, and software-as-a-service solutions to the racing and wagering industries.

It operates in both business-to-business and business-to-customer spheres and services a geographically diverse and established customer base of racing bodies and authorities, wagering operators, media and digital organisations, and retail and private clients.

Right now, it has staff in Australia, the United Kingdom, and Sri Lanka. It also has plans to expand into the United States in 2022.

RAS Technology's IPO

RAS Technology raised $29 million through its IPO.

Under its prospectus, RAS Technology offered 19.3 million shares for $1.50 apiece.

That meant it expected its market capitalisation at the time of listing to be around $68 million.

Though, as of its first close, the company can boast a valuation of approximately $72.6 million.

How has the business performed recently?

Here is a brief breakdown of the company's results for financial year 2021:

The company doesn't have any plans to pay dividends.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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