Lynbrook-based internet service provider Aussie Broadband is now trading on the Australian Securities Exchange in an extraordiary step in the company’s ongoing rise.
The company commenced trading on the ASX on Friday 16 October, following an oversubscribed Initial Public Offering (IPO) that raised $40 million.
Under the IPO, 40 million shares were offered at $1 a share, which gave the company an initial market capitalisation of $190.3 million.
Managing director and CEO Phillip Britt said the $10 million customer offer was over-subscribed and closed within 75 minutes, with over 9,000 queueing before the offer opened.
Existing shareholders remain heavily invested in the business and there was no sell down in the IPO.
“Money raised under the offer will be used to accelerate infrastructure development, acquire new customers and expand its business offering,” said Mr Britt.
The successful IPO, managed by Shaw and Partners, places the company in a strong position to continue the $67 million rollout of its own dark fibre network, which will reduce its reliance on third-party infrastructure and deliver long-term cost savings.
The fibre project, which started in May 2020, is expected to be completed by 2022.
Mr Britt said this is really the next major step in allowing the company to control its own destiny.
“Our own fibre in the ground goes to the heart of our approach to the business. It means that we can control quality and improve our customer experience even more, and it means we can start to drive down our backhaul costs,” he said.
The development follows Mr Britt’s success at the 2020 ACOMM Awards last month where he was named ACOMMS Communications Ambassador of the Year, which is the highest honour presented by Communications Alliance each year.
Aussie Broadband has grown to become Australia’s fifth largest provider of NBN services, serving more than 300,000 residential and business customers across the country.
The company was formed from a merger between Wideband Networks, started by Phil Britt and his business partner John Reisinger in the Latrobe Valley, and Westvic Broadband based in Warrnambool, in 2008.
