IPO Watch: Nightingale shares tank 34% on ASX debut

Breaking out afresh today, drone security business Nightingale Intelligent Systems has readied its IPO to kickoff its entry onto the ASX, but things haven’t quite gone to plan for shareholders that participated in the public offering. 

Debuting as ASX: NGL at a price of $0.22, the US-based tech company has been cashing in on the booming drone market with its advancements to culminate autonomous drones that can replace in-human security (read: security guards). Designed for application verticals such as Enterprise, Defence, and Emergency Response linked to critical infrastructure, the drone tech basically operates as a threat-responding robot. 

Correctly known as Commercial Unmanned Aerial Vehicles (UAVs), Nightingale’s showcase ‘Blackbird’ drone harnesses the ability to autonomously deploy in convoys of any size to conduct patrols or respond to an active threat. 

Without thinking, the Blackbird’s design equipped it to automatically respond to security system alarm triggers, dispatching a fleet of drones to the active location, all while streaming live feed back to a manned security team.

Posted as the sales focus within the IPO Prospectus, its ‘Land and expand’ strategy tactic will see the Company pursue small contracts with large corporations that have tangible drone security applications and requirements within its business as an entry point to foster future business deals.

Fun fact: The royal family is estimated to spend several million to a hundred million pounds annually on security guards across all family members and owned property (the exact number isn’t revealed for security reasons). It is said that security is the largest expense. 

In total, the company’s advanced scouters have yielded a list of 17 customers across eight countries. Current clientele includes the US Air Force, San Pablo Police, Snowy Hydro, tech business Iron Mountain and pharma company Sanofi.

Prior to IPO, Company financials sported revenue gains of 47% between FY20 and FY21, growing from $1.33m (US$0.91m) to $2.81m (US$1.94m), and also secured deferred revenue of $1.29m (US$0.89m).

Making their ASX debut today, NGL shares struggled to get off the ground, closing at $0.145 per share, down 34% on their $0.22 IPO Offer Price. 

Those who participated in the IPO, which raised $6 million, will be hoping Nightingale’s tech performs better than their shares.