Netccentric starts ASX trading on strong note
Singapore
SHARES of Singapore-based digital media company Netccentric surged by as much as 17 per cent to A$0.27 (S$0.273) on Monday, in a strong first-day trading on the Australian Securities Exchange (ASX).
The counter opened at A$0.23, three Australian cents higher than its issue price of A$0.20, and climbed to a high of A$0.27 at noon before ending at A$0.23. Some 2.4 million shares changed hands.
The firm had issued 62.5 million IPO shares at A$0.20 each, having used a A$2.5 million oversubscription facility, and raised A$12.5 million. Its initial minimum target was A$7.5 million.
Chief executive officer Cheo Ming Shen told BT: "It was a good first day for us given the wider macroeconomic concerns posed by Greece. Our stock performance demonstrated that investors will trust companies with strong fundamentals and potential for growth, even in the face of major economic headwinds."
In FY2014, Netccentric posted A$11.1 million in revenue - 35 per cent higher than in FY2013 - and has since 2010 increased its revenues by 20 per cent on average yearly.
Said the company: "Netccentric will use the (latest) funds raised to accelerate this growth through marketing initiatives, continued investment in technical innovation and working capital."
Founded in 2006, Netccentric operates six platforms across Asia Pacific and the UK today, namely blog advertising community Nuffnang; social media advertising community Churp Churp; digital media production house Ripplewerkz; social media agency Sashimi; video production house Reelity.TV; and mobile blogging app Dayre.
"Our vision is to be a leading social media solutions innovator," said Mr Cheo.
Netccentric is reportedly at least the third Singapore-based Internet firm to list in Australia, joining social media entertainment startup Migme - which debuted on ASX last August and now has a market cap of some A$299 million - and flash sales e-commerce platform Ensogo, which debuted in December 2013 and whose market cap is about A$124 million now.
Nettcentric's market cap is about A$60.4 million.
"Australia is still a significantly greater place for Asean technology IPOs. The retail and institutional investor there are very supportive of great disruptive investments," said Patrick Grove, co-founder of new media investment group Catcha, of which Ensogo is a portfolio company.
