Shoreditch-based LoopUp Group, a global software-as-a-service (SaaS) provider of remote meetings, has announced its intention to float on London’s junior market.
Dealings in the shares are expected to commence later this month, after the company has raised funds by placing shares with institutional and professional investors.
The company intends to use the funds raised to support continued growth by increasing investment in its new business acquisition structure; introducing inbound marketing and creating an online sales channel; and further enhancing its product.
The funds will also enable the group to restructure its balance sheet by paying down existing debt, which the directors believe will improve its chances of gaining new business.
During the first six months of 2016, the group has signed up over 200 new customers, including two major account wins which, based on their historic usage profiles, have the potential to become the group’s largest customers.
Although based in Shoreditch, home of the so-called Silicon Roundabout, the group has offices in San Francisco, New York, Boston and Hong Kong, and four data centres in London, Chicago, Hong Kong and Sydney.
Revenue from the flagship LoopUp product was £9.2 million out of the group’s total £10.1 million in fiscal 2015, a 36% year-on-year increase.
Average daily LoopUp revenue has grown over the last 16 consecutive quarters. The group’s earnings before interest, tax, depreciation and amortisation (EBITDA) have been positive since the fourth quarter of 2013.
Lady Barbara Judge, the chairman of the Institute of Directors, is in line to join as non-executive chairman when the company lists.
“Conference calls and remote meetings have become part of daily business life and yet users have come to expect their experience on these services to be incredibly frustrating and time consuming,” claimed Steve Flavell, co-chief executive officer of LoopUp Group.
LoopUp is designed to give users a streamlined and intuitive experience that addresses users’ frustrations in a simple and powerful way, Flavell said.
“Our differentiated product and proven new customer acquisition model have allowed us to secure over 1,850 customers and grow both consistently and capital-efficiently. The IPO [initial public offering] will provide us with the right capital structure and funds to drive our business forward and introduce the benefits of LoopUp to new customers around the world,” he added.