The XPON Technologies Group Limited (ASX: XPN) share price has had a monumental debut on the ASX, surging 20% higher.
The company floated at 12noon AEDT on Thursday after raising $12.5 million during its initial public offering (IPO).
At the time of writing, the XPON Technologies share price is 24 cents. However, earlier today it was trading at 28.5 cents.
Let's take a closer look at the ASX newbie and its IPO process.
Image source: Getty Images
But first, what is XPON Technologies?
XPON Technologies is a technology and cloud business that provides services and software solutions enterprises in Australia, New Zealand, the United Kingdom, and Europe.
It allows businesses access to and understanding of data captured during their customer's digital experiences using analytics, artificial intelligence, and machine learning.
It also runs 2 proprietary technology platforms: the Wondaris Consumer Data Platform and the Holoscribe Extended Reality platform.
Its XPON Technologies founder, managing director, and CEO Matt Forman said:
XPON is uniquely positioned at the intersection of converging trends in data privacy and marketing technology…
With businesses facing stricter data privacy restrictions, shorter customer attention spans, and higher expectations for valuable brand experiences, the tools XPON offers through the delivery of our full-stack solution are in high demand.
The company's key verticals include retail, financial services, media & entertainment, and travel.
It has more than 190 customers, including ASX companies such as Super Retail Group Ltd (ASX: SUL), Domino's Pizza Enterprises Ltd (ASX: DMP), Flight Centre Travel Group Ltd (ASX: FLT), and Webjet Limited (ASX: WEB).
XPON Technologies share price surges following IPO
XPON Technologies raised $12.5 million by selling 62.5 million shares – its maximum planned issuance – through its IPO. Under its prospectus, shares in the company were offered for 20 cents apiece.
The company plans to use the funds raised through its IPO to scale and expand its business.
Most will go towards expanding sales, marketing, and customer growth, while a decent portion will fund product development and capability.
From June 2020 to June 2021, the company reported annualised recurring revenue growth of 253%. Right now, its customer retention rate is 99.6%.
Following its float, the company's management and board have a combined 52% holding in its securities.
At its offer price, the company expected to list with an undiluted market capitalisation of around $60.7 million with approximately 303 million shares outstanding.
At its current share price, XPON Technologies has an undiluted valuation of approximately $72.8 million.
