Aussie Broadband is officially a public company. Trading of shares in the company began this morning with a listing on the Australian Securities Exchange (ASX), following an oversubscribed Initial Public Offering (IPO) that raised $40 million.
Under the IPO, 40 million shares were offered at $1 a share, which gave the company an initial market capitalisation of $190.3 million.
Managing Director and CEO Phillip Britt said the $10 million customer offer was over-subscribed and closed within 75 minutes, with over 9,000 queueing before the offer opened. Existing shareholders remain heavily invested in the business and there was no sell down in the IPO.
Companies typically become publicly traded, as a means to raise capital to support plans for future growth. In the case of Aussie Broadband, it looks like they’re doing exactly that, with plans to continue climbing the ladder from their current position as the 5th largest Australian ISP.
Currently, Aussie Broadband services more than 300,000 residential and business customers across the country.
“Money raised under the offer will be used to accelerate infrastructure development, acquire new customers and expand its business offering.”
Aussie Broadband Managing Director and CEO Phillip Britt
Dark fibre network
The successful IPO, managed by Shaw and Partners, places the company in a strong position to progress its $67 million rollout of its own dark fibre network, which will