On its first day of dealings, Microlise Group (SAAS ) raised gross proceeds of £61.2 million through an oversubscribed fundraising as the firm made its debut on London’s AIM market.
Established in 1982, the award-winning firm provides transport management software fleet operators with the aim of helping them to improve efficiency, safety, and reduce emissions.
The SaaS-based transport management technology company, which has more than 400 customers with other 500,000 vehicles using its software, raised £18.6m for the Company and around £42.6 million for certain selling shareholders at a price of 135 pence per share.
Upon its admission this morning, the transport logistics software group now has a market capitalisation of approximately £156.5 million at a price of 135p with a free float of 39.1%.
Addressing shareholders today, Microlise’s CEO, Nadeem Raza, said: "This is a fantastic day for Microlise. With an established track record of growth, proven management, and a market-leading position in providing technology solutions to fleet operators, Microlise is well set to capitalise on what we believe to be a major growth opportunity.”
The Nottingham-based firm said the listing will enable it to advance into its next stage of development and to realise significant revenue potential within the existing customer base, to up-sell and cross-sell Microlise's products, as well as to broaden its product offering.
Microlise, which is mainly based in the UK but has offices in France, India, and Australia, said the listing will allow for penetration of new geographies and market segments, including the market for smaller fleet sizes and different vehicle types, such as light commercial vehicles.
Addressing shareholders, it noted, “Our IPO will support the next stage of our development, including expanding our international business, and entering new market segments.”
The firm’s proprietary modular platform was specifically developed to provide an end-to-end technology solution for fleet operators. More than half of the UK’s large HGV fleet operators, which is defined as more than 500 vehicles, use the platform, it highlighted.
The Group holds a diverse customer base, with over 400 enterprise customers including organisations representing 88% of the UK grocery retail market by market share. Its other customers include firms such as Culina Group, DFS, Hovis, MAN Truck & Bus UK, and Yodel.
Microlise said it has a track record of consistent recurring revenue growth, profitability and cash generation, growing recurring revenue by 19% in FY20 to £32m (total revenue £50m).
In addition, Microlise informed investors that it qualifies for the London Stock Exchange's Green Economy Mark which recognises companies that derive 50% or more of their total annual revenues from products and services that contribute to the global green economy.
Commenting on the wider transport industry, Raza said, “Our customers are under pressure to meet increased environmental regulations and want more integration across supply chains. In addition, the challenges of the pandemic and Brexit have raised even greater awareness of the need to optimise the movement of goods efficiently and sustainably.
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