Freelancer.com to test the waters for digital outsourcing
Freelancer.com presents a unique business model for an ASX-listed company, in that it has no local peers with which to compare share price performance.
The company is an online marketplace where small businesses and consumers post jobs for freelancers. The prospectus says there are more than 600 job categories ranging from website design, to accounting, to manufacturing.
Freelancer.com's main source of revenue comes from fees associated with posting and accepting jobs, as well other subscription services and it depends heavily on its ability to generate website traffic, which it recognises as one of its biggest risks in its prospectus.
The initial public offering at 50¢ a share, should it be fully subscribed, will give Freelancer.com a market capitalisation of $218 million. However, only 30 million shares will be sold under the general offer and a further 5.1 million under the employee offer out of a possible 436 million shares.
The float will raise about $17.55 million through the sale of a 6.9 per cent general stake and a 1.2 per cent employee stake.
Chief executive and chairman Matt Barrie will retain a 46 per cent stake in Freelancer.com.au with more than 200 million shares.
Last year Freelancer.com reported net revenue of $10.6 million with an after-profit tax of $728,000. This year the company forecasts revenue to surge 73 per cent to $18.3 million, with a profit of $471,000. Forecast earnings are 11¢ a share.
For prospective investors, the tough pill to swallow may be the forecast price-to-earnings multiple of 463 times.
Freelancer.com is expected to list on the ASX on November 15.
Frequently Asked Questions about this Article…
Freelancer.com is an online marketplace where small businesses and consumers can post jobs for freelancers. It offers over 600 job categories, ranging from website design to accounting and manufacturing. The platform generates revenue through fees associated with posting and accepting jobs, as well as other subscription services.
Freelancer.com is going public to raise capital through an initial public offering (IPO). The float is expected to raise about $17.55 million by selling a 6.9% general stake and a 1.2% employee stake, which will help the company expand and grow its operations.
If the IPO is fully subscribed, Freelancer.com is expected to have a market capitalization of $218 million, based on the initial offering price of 50 cents per share.
In the IPO, 30 million shares will be sold under the general offer, and an additional 5.1 million shares will be available under the employee offer, out of a total of 436 million possible shares.
Freelancer.com forecasts a revenue increase of 73% to $18.3 million this year, with a profit of $471,000. Last year, the company reported net revenue of $10.6 million and an after-tax profit of $728,000.
One of the biggest risks for Freelancer.com, as noted in its prospectus, is its reliance on generating website traffic. This is crucial for maintaining and growing its revenue streams.
Chief executive and chairman Matt Barrie will retain a 46% stake in Freelancer.com, holding more than 200 million shares.
The forecast price-to-earnings multiple for Freelancer.com is 463 times, which may be a consideration for prospective investors evaluating the company's valuation.
Call 1300 880 160
Start a chat
Schedule a call
