AppsVillage last week raised A$5 million in its IPO on the Australian Securities Exchange (ASX) at a A$13.3 million (NIS 32 million) valuation. Demand for the offering was strong. The share price in the IPO was A$0.20. Following fluctuations in the share price in the subsequent days, it closed today at the same price as in the IPO.
AppsVillage, founded in 2015 in Israel, has developed a software as a service (SaaS) platform on the cloud that allows small and medium-sized businesses to launch and manage mobile phone apps as part of their business promotion. An Australian company founded in 2018 in effect acquired the Israeli company, and has now held its IPO. The company generates its revenue by selling licenses to use its platform at $19.99 for a one-month subscription or $14.99 per month for a one-year subscription. The company also charges commissions on purchases through the app and on social media advertising by its customers. According to AppsVillage's prospectus, its revenue totaled $373,000 in 2018, compared with $78,000 in 2017. AppsVillage's also posted a $1.5 million net loss in 2018, compared with a $555,000 loss in 2017. In a report published following the IPO, AppsVillage said that its revenue reached $631,000 in the first half of 2019. The company was recently added to a plan in which Facebook helps promising startups.
Cofounder Max Bluvband, AppsVillage's CEO, owns 4.6% of its shares following the IPO. Bluvband is the son of Tel Aviv Stock Exchange-listed company ALD controlling shareholder and CEO Dr. Zigmund Bluvband. ALD recently announced a plan to hold an IPO for a subsidiary on ASX. The largest shareholder in AppsVillage is VP business development Moshe Cohen with 8.3% of the shares. AppsVillage's chairman is former Amdocs VP Yoav Ziv.
AppsVillage was advised in its IPO by RM Corporate Finance and Pearl Cohen Zedek Latzer Baratz senior partner Adv. Anna Moshe, and by A-Labs in its pre-IPO roadshow.
"Many small and medium-sized businesses lack experience in digital marketing, and can't afford the cost of using the tools in this sphere," Max Bluvband explains. "AppsVillage addresses one of the most important things that businesses need today in order to grow in a digital environment by equipping them with a smart marketing tool that requires no knowledge or large expenses. We're seeing large-scale demand for our solutions, and expect to continue growing at a rapid pace." Bluvband adds that the company has a stable model for rapid growth, and that the ASX is a marvelous way of raising money.
20 Israeli companies in various fields, including Audio Pixels (a A$481 million market cap), Fluence (A$225 million) and Splitit (A$169 million) are currently listed on the ASX.
Published by Globes, Israel business news - en.globes.co.il - on September 2, 2019
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