Swoop Holdings Limited (ASX:SWP) (formerly STEMify Limited) is a telecommunications company formed by the merger of Cirrus Communications and NodeOne Telecommunications. On the 27th of May, Swoop had an exceptional re-listing on the ASX.
Swoop Holdings Limited (‘Swoop’) is a national provider of fixed wireless internet services to wholesale, business and residential customers. The Swoop network is designed and scaled to deliver ultra-reliable, high throughput, flexible telecom network services. Swoop is well established and will aim to build its business to become Australia’s best challenger internet and telecommunications provider. In conjunction with the acquisitions, the Company successfully completed a fully underwritten offer (Offer) which raised gross proceeds of $20 million and was more than 15x oversubscribed.
Directors Tony Grist and James Spenceley along with major shareholder Tatterang showed strong support for the listing, subscribing for $4 million of the capital raise. Spenceley is the founder of telco Vocus Group Ltd (ASX: VOC). In addition to the internal support, the significant demand from institutional and retail investors allowed the Company to build a high-quality shareholder base of local fund managers and over 1,500 retail shareholders.
The infrastructure-based telecommunication company will use the Offer proceeds for organic expansion of its fixed wireless network and customer base as well as potential acquisition of complementary businesses. The combined business continues to perform well with operational and financial performance for FY21 in line with the Company’s expectations. On listing, Swoop will have approximately 169.6 million ordinary shares on issue implying a market capitalization of approximately $84.8 million at the offer price of $0.50 per share, over $22 million in cash and no bank debt.
The share price sky-rocketed to $1.25 a share – surging 150% on the first day of trading. This performance took SWP’s market capitalization to close to $200 million.
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