Hiremii Ltd, a digital recruitment specialist, hopes to be the ASX’s next small cap tech darling as it seeks to raise $6 million in an initial public offering before a planned listing in early May.
Founded in 2016, Hiremii offers a digital alternative to traditional recruitment services and operates two business arms. One is a fixed fee recruitment business and the other is a recruitment and full-service labour hire business that provides digitised employee onboarding and labour hire services.
Both businesses utilise Hiremii’s proprietary cloud-based platform, also called Hiremii, which uses machine learning and potentially artificial intelligence to remove the tedious manual tasks associated with the recruitment and onboarding processes, pre-vetting and shortlisting candidates based on employers’ specific requirements.
Rapid growth
Funding from the IPO will be used to support Hiremii’s rapid growth, which has seen revenue increase from $78.000 (FY18) to $6.2 million (FY20) - a staggering 8,346% increase in just three years.
Hiremii’s managing director and CEO Chris Brophy told Proactive the ASX listing would future-proof the business and help it scale up.
“The best pathway for Hiremii to scale is to share it with the market,” he said.
“Our growth trajectory over the past three years has been enormous, resulting in the $6.2 million revenue for the 2020 financial year, all of which has been delivered by a small team of 10 employees and the Hiremii platform.
“The funding from the IPO will allow us to deploy teams in New South Wales and Victoria, whilst also investing in our machine learning and AI technology, to make the platform even better than it already is. Both of which will augment our ability to scale and generate additional revenue.
“The recruitment sector is worth about $40 billion, and it is crying out for tech-powered solutions, so we have the potential for gigantic market growth.”
The initial public offering
Hiremii will join the ASX’s burgeoning group of tech companies, which enjoyed a positive 2020 despite the global pandemic.
The sector is expecting a return to a “normalised 2021”, however, the pandemic created longer-term benefits for the industry, including sustained working-from-home patterns, increased use of cloud, lower expenditure on physical property and a growing shift to emerging security solutions.
The company is offering 30 million shares at 20 cents each to raise $6 million.
The offer closes on Friday, April 30, and Hiremii intends to list under the code HMI on Friday, May 7, with an indicative market cap of $14 million.
“We are seeking to disrupt the traditional labour hire and recruitment sector by providing a digital technology solution for clients and candidates via our proprietary cloud-based platform, and invite you to consider this opportunity to invest in us and look forward to welcoming you as a shareholder,” Brophy said.
- Daniel Paproth