Prospectus lodged, seeking to raise up to A$12.5mil
To fund geographic expansion and implement mobile strategy
SINGAPORE-headquartered Netccentric Pte Ltd, the company behind pioneering blog advertising community Nuffnang, is set to list on the Australian Securities Exchange (ASX), saying it has lodged its prospectus with the Australian Securities and Investments Commission.
In a statement, it said it is seeking to raise up to A$12.5 million (US$9.8 million) from investors, with A$7.5 million (US$5.9 million) of cornerstone support for the transaction already secured.
Investors include high net-worth individuals and institutions such as KSK Group, Pang Tee Chew of Mamee Double-Decker, Tony Tiah of TA Enterprise, and Kevin Tsai Shao Chung, president of Want Want China Media Group.
Established in 2006, Netccentric is a digital media, marketing and technology business which says it connects advertisers across Asia Pacific with nearly one million blogs and over 230,000 social media influencers, who in turn engage their audiences of 41.6 million unique monthly individual viewers.
Cofounded by Cheo Ming Shen and Timothy Tiah, Netccentric has grown its revenues to A$11.1 million (US$8.7 million) at the end of calendar year 2014 from a seed investment of A$67,000 (US$52,460).
The company claims to have achieved 35% growth in revenue and over 400% growth in profit for 2014, compared with the previous year.
Netccentric has been self-funded to date, reinvesting profits from the business to grow. It said it has a clear growth strategy which includes organically growing the size and number of customers currently being serviced, geographically expanding into new markets, and implementing a mobile growth strategy.
Following its IPO (initial public offering), the company said it would use the new investment to continue the rollout of its six subsidiary businesses – Nuffnang, ChurpChurp, Dayre, Ripplewerkz, Nom Nom Media and Reelity.TV – in Netccentric’s key markets including Australia, Singapore, Malaysia, Thailand, the Philippines, China and the United Kingdom.
ChurpChurp is a social media advertising network; Ripplewerkz an interactive media design house; Reelity.TV a video production arm; and Dayre is a mobile blogging application.
Nuffnang itself was first launched in Malaysia, before expanding to Singapore and other markets.
“Admission to the ASX will strengthen our balance sheet and enable us to accelerate our growth to expand in the growing digital advertising market estimated to have been worth A$39.7 billion (US$31.1 billion) in the Asia Pacific region in 2014,” said Tiah (pic above).
Digital ad spending in the Asia Pacific region has grown at an average of 24% per annum between 2010 and 2014. According to Statista, this spending is expected to hit A$56.1 billion (US$43.9 billion) in 2016, Netccentric said.
Its prospectus is available here, for residents of Australia and New Zealand only.
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