Airtasker Limited

Offering Details: Airtasker Limited (Proposed ASX: ART) is engaged in providing local services to its customers by engaging them through an online marketplace platform. ART provides everyday handyman services, cleaning services, and business administration along with more professional services, such as tax consultancy, legal advice and more. ART is looking to raise $83.7mn by offering 23.1mn new shares to the public and offering 105.6mn existing shares at a price of $0.65 per share. The company has lodged its prospectus with ASIC on 8 February 2021, the opening date of offer was on 22 February 2021, the closing date for the offer was on 9 March 2021. The shares were issued on 15 March 2021 and expecting to get listed on ASX today on 22 March 2021. The objective of the offer is to raise sufficient funds to carry out its business goals, enhance shareholder’ value and gain access to the capital market for funding its future growth prospects.

IPO Offer Statistics (Source: Company Reports)

IPO Offer Dates (Source: Company Reports) 

Funds Utilisation: As per the company’s prospectus, funds will be utilised towards the expansion of Airtasker’s marketplace platform, international expansion and to meet its working capital requirements. The company will be utilising $6mn towards marketing expenses, $4mn towards product development, $1.9mn towards working capital, $3.1mn towards offer costs, and $65.3mn from the sale of existing shares to the selling shareholders. 

Risks: The company is heavily reliant on the information technology systems for its online marketplace platform for the taskers and its customers. Thus, any failure in the IT systems may severely impact the business of the company and may lead to financial losses. The company is obliged to follow the rules and regulations maintained by the government or authorities; therefore, any change in law and non-compliance with any regulations may lead to penalties and financial losses for the company.

Summary: The business of ART got affected during the initial phase of the Covid-19 pandemic between February 2020 and April 2020, as its nature of business involves providing various services to the customers such as contactless delivery, home office set up, bicycle repairs, and more. ART has seen a continuous customer’s and tasker’s engagement through its online marketplace platform. The company is expecting an increase in its revenues to $24.5mn in FY21 from $19.3mn in FY20. The company is forecasting its statutory EBITDA operating loss to $10.2mn in FY21 and net Loss of $12.3mn during the same period. After the completion of the issue and transfer of shares on 15 March 2021, the share of ART is expected to get listed on ASX today on 22 March 2021.

Delorean Corporation Limited

Offering Details: Delorean Corporation Limited (Proposed ASX: DEL) is majorly present in Australia and New Zealand and is engaged in the development of renewable energy projects and has recognised a pipeline of infrastructure projects to grow within the renewable energy segment. The company is generating higher IRR on bioenergy projects as compared with other renewable energy projects. The main customer of DEL includes - government agencies, electricity retail, CBH Group in South Australia, Ecogas in New Zealand and more. The company intends to raise $14.0mn by inviting share applications for 70mn shares at an issue price of $0.20 per share. The company has lodged its prospectus with ASIC on 4 March 2021, the opening date of the offer was on 12 March 2021, the closing date for the offer was on 19 March 2021 and the closing date for the secondary offer will be on 26 March 2021. The shares will be issued on 30 March 2021 and the listing on ASX is expected on 8 April 2021.

IPO Offer Statistics (Source: Company Reports)

IPO Offer Dates (Source: Company Reports)

Funds Utilisation: The company will have a total of $18.77mn funds available after raising $14.0mn from the issue of share to the investors with an existing cash reserve of $4.77mn. The company will allocate $13.4mn (71% of total funds) towards the development and investments in DEVO project, $4.03mn (21.5% of total funds) towards meeting its working capital requirement, and $1.34mn (7.1% of the total funds) towards the cost of offering.

Key Risks: The company operates in the energy sector, so any fluctuations in the prices of energy may result in financial losses for the company. The company is exposed to regulatory risks which include taxation policy, accounting laws, transport legislation, and more, so any change in regulatory policies will severely impact the business of the company.

Summary: The company is engaged in the renewable energy segment and the construction of similar projects. The company has posted a revenue of $31.23mn in FY20 and expecting revenue of $$30.20mn in FY21. DEL has posted an EBITDA of $3.65mn in FY20 and expecting an EBITDA of $3.11mn in FY21. The company has posted a significant rise in PAT in FY20 to $2.59mn as compared with $0.85mn in FY19 and expecting it at $1.90mn in FY21. Considering the continued strengthening of the energy market, the company’s focus on its bioenergy projects in Australia, and expansion of its operations to become a vertically integrated renewable energy producer and retailer, the IPO and strategy of DEL is well-timed.

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