Global video technology company Atomos (ASX: AMS) will move forward with its growth strategy to further tap into the burgeoning camera equipment market after listing on the ASX today.
It comes after the completion of an IPO which saw the company raise $6 million through the issue of 14 million new shares at $0.41 each.
The IPO issue price gives Atomos a market capitalisation of $62.2 million.
Atomos, however, broke through its IPO offer price soon after it listed, with shares reaching $0.46 in early afternoon trade.
The Melbourne-headquartered company, which has offices in the US, Japan, China, UK and Germany, delivers video production devices for the content creation markets.
The company claims its technology unlocks the potential of digital cameras, enabling higher quality video and greater creative flexibility at a lower cost.
Products on offer include the HD Apple ProRes monitor/recorders which Atomos claims give content creators, such as social media influencers, a higher quality and more affordable production system.
Atomos was founded in 2010 and has since established seven products designed to address the different segments of the booming video content creation market.
It has also partnered up with a range of big-name technology providers including Apple, Sony, Nikon and Adobe.
Funds set to underpin growth plans
Atomos is focused on expanding into the growing social and entertainment video content markets and plans to use the IPO funds to support its global growth strategy, which include adding to its pro video segment.
Atomos co-founder and chief executive officer Jeremy Young said the IPO and listing were key steps in growing its presence in the burgeoning video content creation market.
“We’ve spent many years investing in silicon and software technology development to give Atomos an advanced offering with proprietary processing and trade secrets that underpin our product line,” he said.
“This technology, combined with our established brand and outstanding key relationships, place Atomos in an ideal position for continued growth.”
The company’s listing on the ASX comes after the firm achieved $35.6 million in revenue for the 2018 financial year.
Pro forma forecast revenue for the 2019 financial year stands at $42.2 million at a projected gross margin of 47%.
Morgans Corporate and Henslow were joint lead managers and underwriters for the IPO.