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Aussie Broadband Launches $40 Million Raising For IPO

Aussie Broadband, Australia’s fifth-largest NBN services provider, is preparing for an IPO valued at 12.3 times forecast earnings.

The telco, which plans to trade on the ASX from October 23, is seeking to raise $40 million at $1 per share. The company has 250,000 customers as of June 30, and grew from 41,184 NBN connections two years ago to 176,481 this year.

Aussie has grown its NBN market share by more than two percentage points in the last two years, from 1.4 per cent in 2018 to 3.5 per cent this year, and believes it will have almost doubled revenue every year for four years by the end of FY21.

The company inked a deal with private fibre cable provider OptiComm to provide fibre-to-the-home services to OptiComm customers earlier this year, and intends to launch a full mobile offering within the next 12 months.

If the IPO is successful, Aussie will list with a $190.5 million market capitalisation and a $149.6 million enterprise value, AFR reports.

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