Aussie Broadband (ASX:ABB) flies on first day of trade
- ASX investors flocked to Aussie Broadband (ABB) today, nearly doubling the telco's share price on its first day of trade
- Listing under the code 'ABB', the telecommunications stock soared 91 per cent on Friday, pricing shares at $1.91 before the weekend
- Aussies' IPO proved a hit with customers, institutional and retail investors, with the $40 million capital raise closing oversubscribed and within 75 minutes
- With 40 million shares issued at $1.00 a pop, ABB carries an indicative market capitalisation of $190 million
- Heading into next week, Aussie Broadband shares are worth just under $2 each
ASX investors flocked to Aussie Broadband (ABB) today, nearly doubling the telco's share price on its first day of trade.
Listing under the code 'ABB', the telecommunications stock soared 91 per cent on Friday, pricing shares at $1.91 before the weekend.
Speaking to today's listing, Aussie's Managing Director and Chief Executive, Phillip Britt, expressed how grateful he was for the shareholders, customers andemployees who lead the IPO's success.
"This day marks the beginning of the next phase of our journey,” he said proudly.
ABB's IPO proved a hit with its customers, institutional and retail investors. The maiden capital raise closed oversubscribed and within 75 minutes, netting the company $40 million to support its float on the ASX.
As a result, Aussie issued 40 million shares at $1.00 a pop — with roughly $10 million in proceeds provided by its existing customer base. Following the IPO, the company's indicative market capitalisation sits at $190 million.
The telco's successful listing sees it join a suite of public companies competing in the national broadband network (nbn) space. Specifically, the telecommunications stock provides nbn subscription packages to a wide range of customers — be it residences, small businesses or enterprises.
Over FY20, ABB set up around 112,ooo new residential connections and brought in $190.49 million — a 91 per cent increase on the year-on-year (YoY) statistics.
Currently, Aussie Broadband services over 300,000 residential, small business and enterprise customers.
But Investment firm Chester Asset Management has already thrown its support behind the newly listed business, encouraged that Aussie's founders are still at the wheel — both as major stakeholders and management personnel.
"For Chester, the Aussie business has a number of impressive features that supported our decision to invest in the IPO," said Portfolio Manager Luke Howard.
"The fact that these key personnel will own more than a quarter of the shares on issue post listing ensures healthy alignment of interest with new shareholders from the outset," he continued.
Closing off today's IPO announcement, CEO Phillip Britt said the company would keep up the "exceptional customer service" which supported its growth.
“Our investors are telling us they want to become part of a business that is operating with incredibly strong ethics and values, that is contributing in unique ways to the Australian community and economy, that has a heart and treats its people well. They want to be part of the Aussie Broadband story, as well as see their capital grow with us," he concluded.
Heading into next week, Aussie Broadband shares are worth just under $2 each.