Digital media business Netccentric is set to float on the Australian Securities Exchange today, after the business successfully completed a $12.5 million IPO capital raising.
The business, which owns businesses with offerings in blogging networks, social media influencers and a digital media production house, has issued 62.5 million shares at $0.20 per share, after surpassing the initial $7.5 million target.
Netccentric operates six subsidiary businesses Nuffnang, Churp Churp, Reelity.TV, Sashimi, Ripplewerkz and Dayre, which operate in several regions including Australia, Singapore, Malaysia, Thailand, Philippines, China and the UK.
Speaking with AdNews chairman of the Netccentric board Martyn Thomas, said the IPO and the oversubscribed capital raising will help the business expand to new markets and also bolster offices in Australia.
“For me - realising the increased investment to grow existing markets and it allows us to open a full-time Sydney office so we can grow that and grow other markets,” Thomas said.
“Growing in new markets Taiwan, Indonesia, Vietnam, which collectively already have digital ad spend in 2014 of over $100 million, [This capital raising gives the business] the opportunity to get in there and grow those markets.”
Thomas also has his eyes firmly fixed on the expansion into mobile, and one way the business can do it is with its offering, Dayre.
“Dayre - it's born from a need. Most content online in social environment is short form, so we're not challenging that, what Dayre does is combination of Foursquare, a blog, Vine, you can take photos and it's got stickers as well. It's got over 400,000 users with marginal promotion at the moment,” he said.
One of the businesses in the Netccentric stable is Nuffnang, a blogging network, which allows advertisers to promote their products and services across a network of over 950,000 bloggers.
Felicity Grey, managing director for Nuffnang Australia told AdNews that while there are long term goals for the business, while the space is so dynamic you have to be flexible when it comes to what you focus on in the short-term.
“When we started six years ago no one had monetised blogging, you had these amazing writers building up this audience, since we’ve been around we've been able to be the backbone for them. They're the writer, the photographer, the editor, the CEO of their own company, but we're the sales end.”
Netccentric was founded in 2006 on an initial $55,000 investment. In the 2014 financial year the company generated more than $11 million in revenue, a 35% increase on the previous financial year.
CEO of Netccentric Cheo Ming Shen said: “Today marks an important day for the Company and listing on the ASX positions us well for our next phase of growth. We have a focused strategy and are well funded to deliver growth internationally across our client base in both existing markets and new markets.
“We look forward to providing the market with further updates in the near term as we move forward as a listed entity.”
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