Careteq makes ASX debut to fast-track assistive living tech platform

Careteq ASX CTQ IPO aged care health technology Sofihub eazense
Careteq marks the first health tech stock to list on the ASX in 2022.

Careteq (ASX: CTQ) has become the first health tech stock to list on the ASX this year as it aims to fast-track the growth of its assistive living technology platform globally.

The company started trading on the exchange today following its successful initial public offering (IPO), which raised $6 million through the issue of 30 million shares at $0.20 each. Its market capitalisation on listing is $24.7 million.

Careteq has developed and commercialised a suite of products on its proprietary software-as-a-service (SaaS) subscription based ‘assistive living’ technology platform for use by the elderly, disabled and vulnerable individuals.

Through a range of devices and sensors, the platform can offer many benefits including the ability to monitor vital signs and understand a user’s behaviour in order to detect falls or issue emergency alerts to multiple people. It can also provide natural spoken reminders and integrate with other businesses’ products through a partnership program.

In 2021, Careteq also acquired leading medication management company Ward Medication Management, which services 374 residential aged care facilities in New South Wales, Victoria, Queensland and South Australia.

In the chairman’s letter of Careteq’s prospectus, chairman Mark Simari said funds raised through the IPO would be used to accelerate the company’s growth initiatives including organic growth opportunities, cross-selling opportunities between Ward Medication Management and assistive living technology businesses, development of new products, features and applications and Careteq’s international expansion strategy”.

“On Careteq’s international expansion strategy and new market applications, Careteq is partnering with the not-for-profit SiTa Foundation in the United States to develop a safety device that can be used against the alarming increase in domestic violence,” Mr Simari added.

Growth strategy

Careteq has three primary revenue streams: hardware through the upfront sale of devices (sold through specialist retailers in Australia, New Zealand and the US including Harvey Norman and Officeworks); recurring revenue from the monthly subscription to access its Sofihub online monitoring portal; and sales from the Ward Medication Management division that are secured by contracts with residential aged care operators.

Careteq’s growth strategy includes expanding sales and marketing in Australia, promoting cross-selling opportunities and leveraging distribution partnerships to increase share of the business-to-business market, as well as an international expansion strategy.

The company also plans to continue enhancing its product through upgrading functionality and interoperability of the assistive living technology with third-party platforms, as well as incorporating biometric sensing of health conditions and more technical and sensitive sensors into its hardware.

Addressable markets

Industry reports have forecast the global disabled and elderly assistive technology market to be worth US$32 billion (A$44 billion) per year by 2026, with Australia and New Zealand valued at around A$1 billion a year.

According to Careteq chief executive officer Peter Scala, the global aged and disability sector is primed for a technological disruption due to a dire need for productivity improvements.

“As the cost of providing aged and disability care rises, it is our belief that this will prompt government and non-government funders to increasingly turn to assistive living technology solutions such as ours to control costs and provide better patient outcomes,” he said.

“Careteq is well positioned to capitalise on a major emerging technological trend and the early mover advantage and sticky subscriber base give us a long runway to grow our recurring revenues and sales of our unique devices and equipment to a global market,” Mr Simari added.

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