Vertical search website operator the Mitula Group (Mitula) is set to make its debut on the ASX on Wednesday 1 July 2015, having secured $26.5 million through a fully underwritten initial public offering of 35.4 million shares priced at $0.75 each. The Initial Public Offering (IPO), underwritten by Baillieu Holst Limited, attracted significant interest – being more than three times oversubscribed.
At listing Mitula will have 205 million shares on issue, with an indicative market capitalisation (at issue price) of $154 million. It will trade under the ASX ticker code of MUA.
With the required funds now raised, Mitula will commence trading on the ASX with a strong balance sheet to pursue complementary acquisitions.
Mitula has a portfolio of 51 websites in 38 countries operating in 14 languages and under two main brands – Mitula and Nestoria. The company’s search functionality gives users quick and simple access, via a single search query, to millions of real estate, automotive, and employment classified listings from thousands of advertisers.
In April, the Group’s websites had 51 million visits and featured 234 million classifieds listings from some 13,000 advertisers. Mitula generates revenue through two main sources: Google AdSense and from cost per click (CPC) revenue generated from the sale of click outs from the sites.
The Company is forecasting revenue of $26.2 million and EBITDA of $13.3 million in the 12 months to June 2016 – a year on year growth of 42% for revenue and 83% for EBITDA.
Experienced Board and CEO
The Mitula Group has assembled a strong Board and management team. The Board members include Simon Baker (Chairman), Gonzalo del Pozo (Managing Director and Co-Founder), Joe Hanna, Gonzalo Ortiz (Co-Founder) and Sol Wise.
Chairman, Simon Baker, has proven ASX listed company experience in the online classifieds space being the former CEO and Managing Director of the market leading REA Group and the former Chairman of the iProperty Group.
During his tenure at the REA Group, revenue increased from $3.8m in FY 2001 to $155.6m in FY 2008, EBITDA increased from a loss of $6.2m in FY 2001 to an EBITDA profit of $36.6m in FY 2008, and the share price increased from $0.08 to a high of $7.49.
Simon was a Director and Chairman of ASX listed iProperty Group Limited from 2009 to 2012. During his tenure, he oversaw the growth of the business from a share price of $0.08 to a high of $1.32.
He is also an angel investor in around 20 online companies around the world including Redbubble, Aconex, CarAdvice, Vivareal, Real Estate Investar, ArtsHub, Zameen, and Property Portal Watch.
CEO and Managing Director, Gonzalo del Pozo, if a co-founder of the Mitula Group and has significant experience in the online advertising industry.
Gonzalo is the co-founder and former CEO of Globaliza, a major property portal operating in Spain. He is also a director and major shareholder in Inception Capital S.L., an investment fund with over 10 investments in internet companies.
Commenting on the successful capital raising and imminent ASX listing, Chairman Simon Baker, said, “We are pleased to have received such strong demand for our IPO from the Australian investment community and we are excited to be listing in the next week. ”
“We believe an ASX listing will provide the Company with a strong foundation to achieve its longer term growth ambitions.”
Gonzalo del Pozo, added, “our business operations remain strong and we continue to see great opportunities for both organic and acquisitive growth.”
“We believe the business is strongly positioned to deliver our revenue and EBITA forecasts for the 12 months to 30th June 2016.”
Note: Simon Baker is the founder and owner of Property Portal Watch