LoopUp aims to be one of first IPOs since Brexit vote
Conference call provider LoopUp is to go public on AIM, one of the first London flotations since the vote to leave the European Union in June.
LoopUp is aiming to raise £9m, giving a market capitalisation of between £40m and £45m, to support growth and investment in business acquisitions, create an online sales team and enhance its product.
Revenue from LoopUp's conference call product increased by 36% year-on-year to £9.2m for the 2015 financial year out of the company’s total revenue of £10.1m. Revenue from established customers is growing 6.7% per year.
In 2015, 45% of revenue was generated from the US, 41% from the UK, 11% from continental Europe and 3% from the rest of the world.
The conferencing services market was worth £4.7bn in 2015 and is predicted to grew to £5.1bn by 2018.
Co-chief executive Steve Flavell, who was involved in online auction platform GoIndustry, will work alongside counterpart Michael Hughes who will oversee the company’s worldwide operations from his base in San Francisco.
“Our differentiated product and proven new customer acquisition model have allowed us to secure over 1,850 customers and grow both consistently and capital-efficiently," Flavell said. "The IPO will provide us with the right capital structure and funds to drive our business forward and introduce the benefits of LoopUp to new customers around the world."
The chairwoman of the Institute of Directors (IoD), Lady Barbara Judge will be appointed chairwoman of the company on admission to AIM.
After the Brexit vote, initial public offerings (IPOs) from European companies have been put on hold as the pan-European Stoxx 600 fell 11%.