Growth plans for WANdisco as AIM float completes
WANdisco became the first Yorkshire company to float on the London Stock Exchange in two years this morning, in an IPO that values the software business at £37m.
The flotation, which was more than three times over-subscribed with shares placed at 180p each, raised £15m.
WANdisco has dual headquarters in Silicon Valley, California, and Sheffield.
Cash raised from the IPO will be used to fund further growth and invest in the company’s sales teams in the US, Europe and Asia.
WANdisco also has plans to open an office in Chengdu in China as the company looks to target opportunities in the Far East.
It plans to expand through organic growth and by launching new products and winning more customers.
Established in 2005, the company employs 40 people and its customers include Nokia, Hewlett Packard, Intel, Walmart and GE.
WANdisco describes its technology as the “secret ingredient behind the products that you use every day” such as mobile phones.
Its products allow software developers working in different locations to have access to the same data and see the changes others are making in real time.
It is understood that David Richards, chairman and chief executive of the business, and other founders of WANdisco are investing the cash they have made from the flotation – believed to be £1m each – back into the company.
Mr Richards said: “I am delighted with the success of our significantly oversubscribed Placing and with the strong, supportive response we have received from our new, high-quality institutional shareholder base.
“We have a clear strategy for growth and the funds raised through our Placing will help us now to deliver on that strategy, opening up new markets, new products and new possibilities both for WANdisco and for its customers.”
WANdisco is able to maintain steady revenues as it uses an annual subscription licence model to sell its products.
However, revenue increased by 30% from just short of £2m in 2010 to £2.5m last year.
EBITDA before share based payments and exceptional costs has increased from a loss of £520,000 in 2010 to a profit of £130,000 in 2011.
Mr Richards, Jim Campigli and Yeturu Aahlad were the founders of WANdisco. They were subsequently joined by non-executive directors Nick Parker (chief financial officer), Paul Walker and Ian Duncan.
Law firm DLA Piper’s corporate team in Sheffield acted on the IPO, which sees WANdisco admitted to the Alternative Investment Market.
The team was led by partner Jon Kenworthy and legal director Rob McKie, with support from Richard Blackburn, Rachael Wake, Mark O’Conor, George Barboutis and Sarah Kite.
Mr Kenworthy said: “We are delighted to have advised WANdisco on this pioneering listing. People often think ‘open source’ means free but this is certainly not the case – WANdisco is a leader in an exciting group of companies which has proved that open source software is a sound basis for an exciting, growing and cash generative business.
Phil Abram, KPMG’s Leeds-based UK regions head of transaction services, also advised on the float.
He said: “This is an important transaction being the first IPO of a Yorkshire based business for more than a year and indeed is one of less than 25 UK listings on AIM in 2012.
“The listing demonstrates the continued role of AIM in providing funding into growth businesses and also shows a strong interest from investors, in the public or private markets, for businesses operating in the technology sector which, as part of their offer, support efficiency for their own customers.”
Tissue Regenix was the last major Yorkshire IPO in 2010.
