E-learning solutions provider ReadCloud (ASX: RCL) made its debut as a public company on the ASX today, having raised $6 million as part of its Initial Public Offering (IPO).
Having completed the raise at $0.20, the stock was trading at $0.265 per share in afternoon trade on Wednesday, up 32.5%.
The newly-listed company has experienced a rapid take-up of its novel e-book learning software over the past 2 years, with ReadCloud’s software platform being used by 50 schools in 2017 and picking up 21,800 total users.
In 2018, ReadCloud expects to double user numbers by expanding its sales and distribution network. According to today’s announcement, ReadCloud has begun a recruitment process for salespeople across Australia, as well as software development personnel to support the growth of the business.
The company also says it intends to quickly raise awareness of its service offering through investing in digital marketing, saying that all of its growth to-date has been largely achieved via “word of mouth.”
“The strong investor support for ReadCloud through the IPO process is a testament to the quality of the ReadCloud eReading platform, the experience of the leadership team and the rapid growth of the business,” said ReadCloud Chairman Paul Collins.
“I believe the strategy of further software development and additional sales and marketing staff will position ReadCloud for further growth by targeting the 2,700 secondary schools and 1.6 million full-time secondary school students in Australia,” said Mr Collins.
The reason for ReadCloud
A significant reason underpinning the sharp uptake in ReadCloud’s services by schools is the modernity of its software platform and compatibility with existing digital tools to help students achieve better results in schools.
Students and teachers can share notes, questions, videos and web links directly inside all available eBooks, with the ability to transform any eBook into a collaborative discussion environment for social learning and engaging students.
ReadCloud ensures any school’s curriculum is accessible via one application, made available across multiple platforms and devices, regardless of the school’s choice of publisher.
According to ReadCloud CEO Lars Lindstrom, ReadCloud co-founder and former CFO at Nyhedsavisen, Denmark’s most popular newspaper, “our purpose at ReadCloud is to assist schools transition to digital curriculum whilst delivering software tools that can help make students smarter and teachers better.”
ReadCloud is expected to release its financial results for the second half of last year later this month, but says that as of the end of January 2018, 68 schools have been successfully on-boarded on the ReadCloud platform, representing “nearly a doubling of contracted users over 2017 and with a strong pipeline, the Company expects to onboard more schools before the financial year-end.”