Intrigued by Australian tech companies? Small-cap IPOs on your radar? Contemporary demand for enterprise cloud solutions, particularly in the networking space, has you excited?

Well then, you might wish to consider ActivePort Group which is set to list on the ASX on 27 Sept 2021 spending their IPO which is slated to close on September 6, seeking to raise up to $15 million at an Offer Price of $0.20 per share. This Offer is not underwritten.

Incorporated in October 2019, ActivePort provides wide-area-network (WAN) solutions for multi-office enterprises, managed through software which is easily customisable by the end-user and allows for seamless integration across multiple hardware devices globally. 

As Chairman Peter Christie writes in his letter to prospective investors, “ActivePort has developed an innovative software product that is used to orchestrate data connections between the offices, factories, sites and branches at the Edge of enterprise networks to core computing services in the Cloud.”

“Software defined wide area networking (SD-WAN) is revolutionising data communications, making networks easier to connect and cheaper to operate and ActivePort is proud to be at the forefront of this revolution.”

ActivePort currently operates on a monthly subscription license plus per-connection basis for their software, while also offering access to WAN access point hardware in their data centres for those customers in need of more infrastructure for scalable communications. Their software solution, an application programming interface or API, allows the end-user to customise wildly, and to brand the software in their own fashion as they see fit—as ActivePort states on their website, they have developed ‘white-label’ software for their target market, allowing for more effective communication across multinational offices, with the ability for end-users to deploy their own security solutions as they see fit. 

Magnolia Capital has entered the IPO as a significant investor, with ActivePort having exceeded their minimum $10 million target for the listing. It is clear in today’s market that enterprise communications solutions are more important than ever, particularly in the face of a burgeoning Internet-of-Things (IoT) revolution and in the growth of ever-larger tech behemoths that are increasingly difficult for smaller players to compete effectively against. In that sense then, nimbleness is demanded of those willing to compete in such a demanding market—and, most especially, nimbleness in enterprise communications solutions.

At present, ActivePort is not profitable, with significant expenditure marked as operating expenses. For the Half Year ended 31 December 2020 on a pro forma basis, ActivePort generated $3.87m in revenue for a net loss after tax of $1.38m.

Should they raise the full $15m target, the majority would be applied towards increasing their sales capabilities with $2m to acquisitions, $6m to increasing their sales teams, $3m to product development and $2.8m toward working capital. 

ActivePort’s prospective ASX ticket is ATV which would debut on 27 September 2021 with a market cap of $60 million if successfully raising the full $15m target.