Ridesharing company GoCatch has announced plans for the company's Initial Public Offering which goes live in June.
The company, which provides pre-booked and on-demand transport around Australia without surge pricing, is currently conducting a pre-IPO funding round with a short-list of brokers in review and intends to cap its IPO at $5 million.
GoCatch says it will give priority allocations in the IPO to drivers and fleet owners in the space.
The group will put proceeds from the IPO toward accelerating the servicing of an existing pipeline of revenue opportunities.
GoCatch CEO, Andrew Campbell, says the group is on track to break even by June 2018.
"The reason we have decided to list on the ASX is to provide an opportunity for the fragmented market of vehicle owners, operator and drivers to invest in the distribution channel that originates their bookings," says Campbell.
"With less than $12.5 million of capital investment to date since 2011, GoCatch has developed a user base of 59,000 drivers and is executing on a sustainable business to business model that is close to break even."
With no debts and current monthly expenses below $220,000 a month, proceeds from the IPO will be primarily directed to accelerating revenue growth.
In the medium term, the company says it intends to provide alternative wholesale products in competition with participants in the $181 billion car rental market.
The listing of GoCatch comes three months after the launch of European ride-sharing service Taxify in some Australian states.
GoCatch has also announced the appointment of John Bartolotta as a non-executive board member.
Bartolotta has over 25 year's experience in servicing the wholesale point-to-point industry and is the managing director of Royale Limousines and chairman of the NSW Hire Car Association.
The company says Bartolotta will provide experienced guidance over GoCatch's execution platform to service wholesale contacts.
Bartolotta's appointment yet again shakes up the ever changing GoCatch board. Current CEO Campbell served as chief executive of GoCatch until October 2014 before becoming a program director at the Slingshot Accelerator. He returned to GoCatch in May last year after a string of leadership exits including former GoCatch CEO David Holmes, former chairman Bill Beerworth and Prime Minister Malcolm Turnbull's son Alex Turnbull who was a director of the ridesharing company.
Business News Australia