Careteq Ltd (ASX:CTQ) has officially rung the bell and hit the boards as an ASX-lister under the code ‘CTQ’.
The health-tech company completed a $6 million initial public offering (IPO) in December, offering 30 million shares at $0.20 a pop to give an implied market capitalisation of $24.7 million.
Careteq hopes to use the funding to accelerate its growth in the assisted living technology sector.
In this pocket, it’s developing cloud-based, software-as-a-service solutions and a range of sensors to help improve the lives of older Australians and those living with disabilities.
CTQ by the numbers
Careteq made its ASX debut on Monday at 11:00 am AEDT following a $6 million December IPO.
Thanks to the pioneer offer, the newly minted ASX-lister has more than 123.56 million shares on issue, with just under a quarter of those held by new investors.
The health-tech stock’s implied enterprise value sits at $15.9 million, while its pro-forma net cash balance at the end of FY21 was $8.9 million
With $6 million from the IPO under its wing, Careteq intends to fund several key initiatives, including:
- Technology development ($1.97 million);
- Sales and marketing ($1.2 million);
- Operations ($685,000);
- Personnel ($330,000);
- Working capital and corporate overheads ($1.76 million); and
- Covering offer costs ($670,206).
Careteq believes the funding provides enough of a runway to support its operations and help achieve its objectives for the next two years.
Targeting assisted living technology market
Careteq has its eye firmly trained on innovative tech offerings in the assisted living space.
In particular, its solutions are amenable to the aged and disability care sector — an area the health-tech stock believes is ready for a tech revolution amid several major hurdles.
Considering the ageing demographic across all major economies, a chronic shortage of staff and recommendations put forward by Australia’s own Aged Care Royal Commission, Careteq believes demand for assisted living technology will continue to grow.
Looking out, CTQ’s serviceable addressable global market is forecast to be worth US$32 billion (circa A$44 billion) a year by 2026, with the Australia and New Zealand market estimated to be worth around A$1 billion a year.
The company’s products and services, which improve outcomes for patients and their carers while increasing productivity, are sold in Australia and internationally.
Careteq generates revenues from recurring platform subscriptions, contracted medication management services and sales across its sensor and device ranges, which detect falls or unusual behaviour, monitor patient health, provides SOS emergency call functionality and deliver medication reminders.
Its leading product is the SOFIHUB portal, a holistic tech platform that incorporates the above features for those living in assisted living spaces.
SOFIHUB can be purchased at medical retailers and national brands like Harvey Norman Holdings.
The Careteq team
Careteq is led by a series of executives with decades of experience in the health-tech industry.
Company CEO Peter Scala and non-executive chairman Mark Simari previously held key positions at Paragon Care Ltd (ASX:PGC) — one of Australia’s largest medical equipment companies.
Speaking to the company’s listing in a market announcement today, CEO Scala said: “The global aged and disability care sector is primed for a technological disruption due to a dire need for productivity improvements.
“As the cost of providing aged and disability care rises, it is our belief that this will prompt government and non-government funders to increasingly turn to assistive living technology solutions, such as ours, to control costs and provide better patient outcomes.”
Chairman Simari echoed Scala’s comments: “Careteq is well-positioned to capitalise on a major emerging technological trend and the early mover advantage and sticky subscriber base give us a long runway to grow our recurring revenues and sales of our unique devices and equipment to a global market.
“I am delighted to welcome all shareholders to be part of the next exciting and significant phase of growth for Careteq.”