Cape Range Limited
ASX code: CAP
Shares on offer: 30 million
Listing price: 20c
Market capitalisation: $15.1m
Listing date: TODAY
The accounting industry — just like most other industries — has changed rapidly over the past decade as technology has driven innovation.
Businesses are required to quickly respond to an ever-transforming environment, and the arrival of big data analytics platforms has allowed companies to better manage day-to-day accounting tasks.
Studies show that global revenues of the accounting software market have exceeded $US10 billion in 2016 and the Asia Pacific region will probably remain one of the key growth drivers over the coming years.
The forthcoming listing of Cape Range offers Australian investors the opportunity to invest in an Australian software company focused on accounting and business intelligence services.
Cape Range recently acquired Biztrak Business Solutions, an Asia-focused company offering software solutions to 18,000 companies with more than 37,000 users. Biztrak software applications cater for small and medium enterprises in a number of sectors including retail, logistics, health care, financial services and education.
Founded in 1995, Biztrak is far from being a start-up: The business was entirely funded by the founders and no external capital has been raised to date. The Biztrak business is cash-flow positive and has grown organically since inception, while in-house R&D capabilities allow the company to launch new products quickly and cost-effectively. However, potential funding demand, competition and its geographic focus are principal risks.
More than $5 million has been raised to date and the IPO is expected to close shortly with a targeted listing in mid-November. Nonetheless, a long-term investment horizon is required, however a tightly held share register and an undemanding pre-money valuation of $9.1m are attractive qualities.