Motorists stung by road safety cameras will have the chance to profit from their misdeeds, with Australian artificial intelligence camera technology developer Acusensus announcing plans to take the company public, with a listing on the Australian Stock Exchange (ASX).
Acusensus has lodged its underwritten IPO prospectus, seeking to raise $20m through the issue of 5 million shares at $4 per share, which will its indicative market capitalisation on listing to just over $100m. It is anticipated that the stock will start trading on the ASX on Jan 12, 2023. Bell Potter Securities Limited was lead manager and underwriter to the IPO.
Why is Acusensus’ solutions a unique offering?
Strong interest has come from a number of high net-worth investors, several of who have experienced the smart camera technology first hand, experiencing their traffic transgressions captured in high-resolution images since the solution has been rolled out in NSW and QLD.
Acusensus has developed patented artificial intelligence camera technology that can detect drivers using their mobile phone, seatbelt compliance, speeding, vehicles driving in closed freeway lanes, unregistered vehicles, and vehicles of interest. The fixed and mobile cameras can operate at night and across weather conditions, generating high-quality images as evidence for enforcement and prosecution purposes to deter dangerous driver behaviours.
Acusensus was founded by Alexander Jannink and is chaired by Ravin Mirchandani, CEO of Indian power electronics company Ador Powertron. Since launching, it has raised $18.8 million from equity investors to fund its technology development and growth initiatives.
Why is the ASX listing a good move?
Since it was founded in 2018, the firm has secured contracts with govts in NSW, Queensland, WA and the ACT, and operated programs in five continents. Headquartered in Australia, it has offices in the US and is establishing a presence in the United Kingdom. Despite most brokers closing their books for IPOs, Robertson Jr was optimistic about the pre-Christmas timing.
“The company’s material growth, high-quality technology and continued competitive advantage have captured the imagination of investors keen to support the next leg of growth,” commented Bell Potter Equity Capital Markets Director Hugh Robertson Jr.
“The technology market continues to trade strongly and attract interest, borne out by the number of quality investors keen to get in on the ground floor given Acusensus’s operations have global application and a substantial growth pipeline,” Robertson Jr further said.
What does the move mean for Acusensus?
Alexander Jannink said capital raised through the initial public offering would be used to expand its distracted driver program globally, with revenue generated from the global traffic enforcement solutions market expected to reach $7.6 billion annually by 2026.
The funds will also be used to explore solutions to other road safety challenges. Acusensus is partnering with Griffith University on tech that can detect in real time drivers who are impaired by drugs or alcohol and is also working with Swinburne University to develop a warning system for first responders operating in potentially dangerous roadside situations.
“With so many projects on foot, listing felt like a natural progression in taking the company to the next level. With the significant growth and consolidation domestically in the last five years, the company is now well placed to implement a broader long-term strategy that will enable Acusensus to continue to innovate and be first to market with life-saving solutions, moving us closer to our vision of eliminating road trauma globally,” Jannink commented.
