Dreamscape Networks Ltd is one of the world’s leading IT enterprise which specializes in developing advanced and inexpensive online products and services. The company was founded in 2000 and is headed by CEO and Executive Director, Mark Evans. Headquartered in the Dubai Internet City in United Arab Emirates (UAE), Dreamscape has offices and data centres across Asia Pacific, Europe and the United Kingdom. The company is a leading provider of online and cloud-based solutions with specialization in Global domain registration.  Being the holder of all global certifications for high- end domains, the company offers a wide range of domains which are available for registration with more than 600 extensions. Being ISS compliant, customers can be assured that their online data is in safe hands. Dreamscape is a name to contend within the Asia Pacific region while in Australia it is the # 1 domain registrar with more than 30 percent market share of all the registered .au domains. The company offers a combination of shared and dedicated hosting services for websites.  Clients can use the website builder and dedicated web design services of Dreamscape Networks to connect online. As at 30 June 2016, the Company had 34% share of all new .au Domain registrations, 892,540 registered .au Domains and 273,565 hosted websites.
 
Dreamscape Networks which has grown without external funding is now looking to undertake an initial public offering (IPO) of 100 million fully paid shares which is scheduled to publicly list on the Australian Securities Exchange (ASX) on December 02, 2016. The Lead Manager and Underwriter to the Offer is Canaccord Genuity (Australia) Limited. Through the prospectus, the group is set to acquire 100% of the ownership of the group from vendors. Key things to note about the IPO include:
 
Focus on Growth Initiatives: The size of the offer is A$ 25 million of which A$ 15 million will be utilized to enhance the growth of the company along with managing expenses of the offer, and the remaining A$ 10 million will be used against cash component for acquisition of the group. The growth initiatives are expected to include exploring complementary businesses and products for acquisitions, expanding into targeted English speaking Asian countries, product development, and enhancing operations and infrastructure. The listing to be in Australian dollars will be offered at A$ 0.25 per share. The minimum investment is 8000 shares which amounts to A$ 2000. The company will be valued at A$ 86 million once the shares are fully subscribed.
 
Strengths: The group’s position as the leading brand, a proven subscription model, cost-effective operations, and financial management through growing the company from inception to $55 million in forecast FY17 Bookings with zero external funding or investment, have been some key highlights entailing its strong background.
 
Risks: The biggest risk to the group is that numerous competitors exist in Domain and Hosting industries with significant global participants operating in each market. Then high quality customer care is a pre-requisite to success for the group. Further, reliance on third party technology products and procedures on domain name registrations are few other things that play a vital role in growth for the group.
 
Dividend Scenario: The group will not be paying a dividend in respect of FY 2016 or 2017, and future payment of dividends has been said to be at the discretion of the Board of the company.
 
With more than 1.5 million members and registered domains and close to a million products to offer, Dreamscape Networks’ IPO looks attractive but above risks must also be borne in mind before investing. The shares are open for issuance from November 11, 2016.
 
 

Key Details (Source: Company Prospectus)

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