Aussie Broadband, Australia’s fifth largest provider of telecommunications services, debuted today on the ASX with an oversubscribed $40m initial public offering (IPO).
The telco, listed as ABB on the ASX, offered 40 million shares at $1 per share, giving it an initial market capitalisation of $190.3m.
The allocated $10 million for customer offers closed within just 75 minutes and over 9000 people were queuing before the offer even opened to the public.
According to Aussie Broadband Managing Director and CEO Phillip Britt, the funds raised will be used to “accelerate infrastructure development, acquire new customers and expand its business offering”.
Britt also says the successful IPO, which was managed by Shaw and Partners, places Aussie Broadband in a strong position to progress its $67m rollout of its own dark fibre network, which is due for completion in 2022.
“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 means we can start to drive down our own backhaul costs,” added Britt.
Aussie Broadband has grown its residential customer connections to just over 25,000 in June 2017 to more than 242,000 at the end of the 2020 financial year.
It is now Australia’s fifth largest provider of NBN services and has now connected over 300,000 residential and business customers.
The business was founded in 2008 following the merger of two regional Victorian internet providers.
