Mobile VAS provider IMImobile closed at 133.50 pence per share on the day it made its debut on London’s AIM exchange, up 11.25% from its issue price of 120 pence per share.
During the day, it went up to a peak of 133.50 pence per share, up 11.25% from the issue price and a low of 121.50 pence, marginally higher than the issue price.
IMImobile had filed for a IPO on London Stock Exchange’s sub-market AIM (Alternative Investment Market) earlier this month. Through this IPO, the company raised £30 million (before expenses), by issuing 25 million ordinary shares of 10 pence each at an issue price of 120 pence per share. This represented for 53% of the company’s total issued share capital.
At 133.50 pence per share, the company is valued at £63.15 million, up from its pre-IPO market cap of £56.7 million. However, note that the value of the holding will change with market fluctuations.
Spark Ventures sells 20% stake: One of IMImobile investors SPARK Ventures has also sold 20% of its holding in IMImobile at the issue price to raise around £3.2 million. Post IPO, the company will own 17% stake in IMImobile, valued at around £12.9 million at the IPO price.
Use of Proceeds
After deducting underwriting discounts and other expenses, IMImobile gets around £27 million from the offering. Of this, the company plans to use around £20 million to fulfill its obligations to pay cash for acquiring 34% stake in IMI Mobile India pursuant to the acquisition agreements and for the cash payable by IMI Mobile India for the surrender of options over its shares.
At admission, the company will own 42% stake of IMI Mobile India and on the fifth business day, it will acquire an additional 34% stake in IMI Mobile India. The remaining shares will be held by Tarimela Holdings Pvt Limited (as a nominee of IMIMobile co-founder Viswanatha Alluri) which will own 20.1% stake and IMIMobile founder Shyamprasad Bhat who will own 3.5% stake.
IMImobile plans to use the remaining £7 million to grow its revenue & profit from its core business, expand to select geographies, improve the existing opportunities in selected geographic markets and for exploring possible acquisitions.
IMImobile currently provides mobile engagement products and solutions to mobile operators, enterprises and media companies. It has developed a cloud-based mobile service delivery platform called the DaVinci Evolved Service Platform.
On top of this platform, it offers a suite of consumer lifecycle solutions which allow operators, enterprises and media companies to drive revenues, customer acquisition, customer retention, self-care services, business and productivity applications and audience engagement. These can be delivered either as managed solutions, licensed for on-premise deployment or accessed directly via cloud infrastructure.
IMImobile claims to be working with working with over 100 carriers & enterprises and its solutions are being delivered in over 60 countries in Europe, the Americas, Middle East & Africa and India. Its key customers include mobile operators like Vodafone, Airtel, Aircel, BSNL, AT&T, O2, Telefonica and media & enterprise companies Centrica, Coca-Cola, Universal Music, Tata, the AA and the BBC among others.