Greater access to IPOs through OnMarket BookBuilds

State One has partnered with OnMarket BookBuilds to provide our clients with even more investment opportunities. In addition to the exclusive capital raisings that State One undertakes and offers to our clients, you can now take advantage of offers from OnMarket. Our association with OnMarket will allow you to bid directly on IPOs and have the shares allocated straight to your holdings at State One. Through OnMarket our clients will also be able to access free research, management interviews and get notifications on upcoming IPOs.

OnMarket is Australia’s first online platform that lets all investors buy shares in IPOs free of any fees other than the cost of the shares. Since launching in October 2015 OnMarket has hosted 1 in 3 ASX IPOs, so we are obviously excited to be able to offer our clients access to this cutting-edge platform. For each offer hosted by OnMarket you get easy bidding & payment, free independent research, and a chance to 'meet the management' via exclusive video interviews. Best of all, when you invest in IPOs via OnMarket, any shares you buy can be allocated directly to your State One Stockbroking account so you can manage your portfolio without disruption.

How does it work?

We will display the list of current offers from OnMarket on our website. If you see an offer that you want to invest in then click on the Bid Now button to apply for shares. You will leave State One website and be redirected to our partner's (OnMarket) bidding platform where you will need to sign up with your Holder Identification Number (HIN). If you have already signed up then you will be taken straight to the bidding page for the selected offer.

It is important that you enter your HIN correctly when you set up your login at OnMarket. This will make for a seamless experience if you want your shares to be automatically allocated to your State One account.

Current OnMarket Offers

IPO
Software & Services
$0.20
Size of Offer $3.4 million
Minimum Bid $2,000.00
Opening Date 19/01/2018
Closing Date 29/01/2018

OnMarket limited allocation in the JYG Australia Ltd IPO and the offer may close early. Please bid and pay ASAP as the offer will close once allocation has been exhausted. Apllications above $5,000, may be scaled back more heavily. Allocations will be made on a time priority basis.

JYG Australia Ltd (ASX: JYG) aims to be the leading professional services firm in Australia focusing on Asian in-bound capital and Asian clientele located in Australia.  Their existing operations will be supplemented through acquisitions of practices in Australia and joint ventures with practices located in the key business centres of Shanghai, Hong Kong and Malaysia and leveraging the synergies between them.

JYG Australia advises on transactions for domestic and international Asian investors by providing them with high-quality accounting, legal and financial services and plans to incorporate deal origination capabilities.  JYG Australia’s multidisciplinary model means it is involved from strategy development and negotiations through to completion of transactions. For international clients, JYG Australia’s role usually begins when the client engages one of our network offices to deploy capital between Asia and Australia.

Company’s client service model

Offer Overview

JYG Australia Ltd is looking to raise $3.4 million via it’s IPO and will have an estimated market capitalisation of $16.9 million.  The proceeds of the IPO, combined with existing cash reserves will be used to:

  • make strategic acquisitions;
  • fund working capital; and
  • fund expansion strategies.

As part of the IPO, JYG Australia Ltd will acquire 5 businesses based in Melbourne. These businesses will compliment and expand on the current operations that exist in the multidisciplinary model.

Business Model

The Company services the niche opportunities existing between top-tier and smaller firms, focusing on Asian based clients. Our multidisciplinary approach comes without the top-tier price tag. This model is preferred by overseas clients because it means they do not have to deal with multiple service providers. Each client will be assigned a relationship manager to co-ordinate their suite of professional services.

This business model has already been supported by Shanghai-based private equity firm, Jingyi, with a committed investment of $5 million. Jingyi will leverage its significant resources and network to establish the Chinese platform and seize the opportunities presented by the rapidly growing trends for Chinese investments into Australia.

Growth Strategy

JYG Australia’s growth strategy includes the Company’s multidisciplinary model which provides a suite of professional services aiming to maximise value from each client.  They will launch an asset management business upon TST Asset Management obtaining an Australian Financial Services Licence to focus on raising capital for the Company’s planned investment funds. 

JYG Australia aims to expand its presence across Asia including in China, Malaysia and Hong Kong. The Company will aim to assist new clients with cross-border transactions and will develop centres of excellence and industry specialisation in certain industries; and will redevelop the system to be used across the Group and include new features such as a referral management system.

International expansion plans

Revenue Generation

JYG Australia generates revenue by providing a multidisciplinary approach to professional services. The proactive model starts from advising on deals and transactions through to ongoing compliance and advice. This allows JYG Australia to provide maximum value to every client by offering a suite of integrated professional services that provides comprehensive business and capital investment advice.

Management and Board

JYG Australia Ltd is led by an executive team with direct relevant experience and skills including industry and business knowledge, financial management and corporate governance. Key personnel include:

  • David Turnbull – Non-Executive Director and Chairman with over 40 years’ experience in financial services sectors including roles as corporate counsel for Australian Industry Development Corporation and in investment banking at Elders Finance Group;
  • Francis Gu -  Managing Director with over 14 years’ experience in the Australian accounting and finance industry;
  • Rodney North – Non-Executive Director with over 25 years’ experience. He is the founder and Managing Director of Bourse Communications and Non-Executive Director of ASX listed company iBosses Corporation Limited;
  • Wai Ng has been advising international and Chinese companies in Hong Kong and China for the past decade. Before that, he worked for a number of Hong Kong publicly listed companies and Western multinationals in the Greater China region;
  • Chao Ding has held senior executive positions with major Chinese investment banks. Most recently, he headed an international investment research and analysis division for the Bank of China International Holdings Limited. Mr Ding has also held senior positions with Changjiang Pension Insurance Co. Ltd, which manages over $600 billion of superannuation.

 

As set out in Section 5 of the Prospectus, JYG Australia Ltd is subject to a range of risks, including but not limited to competitive landscape, brand reputation, economic conditions and regulatory changes.

 

Section 734(6) disclosure: The issuer of the securities is JYG Australia Ltd ACN 621 246 419. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

IPO
Software & Services
$0.20
Size of Offer $6.5-7.5 million
Minimum Bid $2,000.00
Opening Date 16/01/2018
Closing Date 9/02/2018

OnMarket very limited allocation in the Simble Solutions Ltd IPO and the offer may close early. Please bid and pay ASAP as the offer will close once allocation has been exhausted. Maximum bid size of $10,000, and allocations may be subject to scale back. Allocations will be made on a time priority basis, and we cannot guarantee that all funded bids will receive and allocation.

Simble Solutions Limited (ASX: SIS) is an Australian enterprise Software as a Service (SaaS) company focused on business and resource management. Their solutions help businesses automate, mobilise, monetise, control and visualise their operations. 

The Company has two solution suites – Mobility and Energy Management. SaaS is their primary source of revenue. SaaS is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.  The Simble Energy Platform is an Internet of Things (IOT) enabled control and visualisation tool, designed for businesses to reduce and manage their energy consumption.

All of Simble’s software products are cloud-based and accessible by customers through any mobile, tablet, laptop or desktop device with an internet connection and feature full offline mode capabilities for Simble Mobility. The software products are available for download by end users either via app stores or customer portals in the case of the Company’s enterprise customers.

Offer Overview

Simble Solutions Ltd is looking to raise up to $7.5 million via its IPO, and will have an estimated market capitalisation of $17.9 million if maximum subscription is achieved.  The proceeds of the IPO will be used to:

  • expand into new geographies and industry verticals
  • establish distribution channel partnerships with utilities for Simble Energy, focussing on Government mandated upgrades of energy metering infrastructure
  • establish distribution channel partnerships with additional telecommunication companies in new markets
  • develop new products and technologies as well as improving and upgrading existing products and technologies
  • cover costs associated with an ASX-listed company, and other typical administration costs

Key Products

Simble targets two segments of the enterprise SaaS market.

Mobility

The market for mobile enterprise software was estimated to be US$74 billion in 2016, and is projected to grow at an average annual compound rate of 9.5% – reaching US$128 billion by 2022. The suite of mobility solutions enables organisations to automate business processes and their workers to operate efficiently, remotely, and collaboratively utilising their mobile device or tablet. Our mobility suite is catered for enterprise and SME markets across a range of industries including Government, Building and Construction, Agriculture, Healthcare, Education, Property and Asset Management.

Energy

The market for energy management systems software was estimated to be US$32.4 billion in 2016, and is projected to grow at an average annual compound rate of 18.8% – reaching US$76.7 billion by 2021.  The Company’s energy management suite enables grid-connected premises to reduce energy wastage, automate control of their switch circuitry and monetise surplus microgeneration capacity. The suite of energy management solutions is principally catered towards enterprise and SME markets across a range of industries including retail, healthcare, utilities, construction, hospitality and industrial customers.

Business Model

 

Simble’s enterprise product suite is delivered to customers across the Australian, New Zealand and UK markets, with its focus being on building a channel based SaaS business. This enables the company to generate revenue from SaaS subscription agreements, that create a significant level of recurring revenue.

Sales and marketing activities are principally driven by channel partners, mitigating the need for a large direct sales force. Simble has existing channel partnerships in place with a major Australian telco, Vodafone New Zealand and a selection of specialist energy service companies.

With just under 15% of revenue derived from customers introduced by channel partners, the company aims to increase its channel partnership network by targeting telecommunication companies, utilities, financial and energy service providers seeking to complement their existing product and service mix.

Some of Simble’s customers include Auckland Council, Barwon Health, Bayer Australia, Boral Ltd, Jurlique, Municipal Association of Victoria, Symbion Pharmacy Services, Tasmanian Ports, Tassal Group Ltd, TW Power Services and Northern Beaches Council.

Growth Strategy

The following initiatives have been recently implemented in relation to the Simble Energy Platform:

  • opening of a dedicated UK sales office to service legislative driven demand stemming from the UK Government’s smart meter rollout;
  • introduction of ‘2-way Smart Control’ and billing functionality into the platform; and
  • engagement with channel partners hosting volume-based sales and marking infrastructure.

Management and Board

Simble is led by an executive team with over 50 years combined experience in the enterprise software / ICT industry. The Board of Directors offer significant capital markets and fund-raising experience. Key personnel include:

  • Phillip Tye – Director and Chairman with over 20 years’ experience and recently established HFL Advisors Limited and ran DragonBack Capital, a multi-strategy hedge fund manager.
  • Fadi Geha – Director and CEO with over 25 years’ experience and held senior management positions with SAP Australia and Accenture.  Fadi was the founder of Acresta, now part of Simble.
  • Phillip Shamieh – Executive Commercial Director with over 20 years’ experience and has been the Founding Director and CFO of Allied Resources Limited since 2011.
  • Mark Duke – Chief Financial Officer with over 25 years’ experience and recently spent 14 years with Findex subsidiary, Crowe Howarth Australia and served as Vice President of Security Capital Group throughout it’s NYSE listing.

 

As set out in Section 7 of the Prospectus, Simble Solutions Ltd is subject to a range of risks, including but not limited to competitive landscape, supply chain risk, technology reliability, product errors and research and development.

 

Section 734(6) disclosure: The issuer of the securities is Simble Solutions Limited ACN 608 419 656. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

IPO
Financials
$1.50
Size of Offer $12-22 million
Minimum Bid $2,250.00
Opening Date 29/11/2017
Closing Date 19/01/2018

The Company has advised that they have received firm commitments of at least $19 million for the IPO. Applications via OnMarket will close 5pm (AEDT) Friday 19th January.   

Duxton Broadacre Farms Ltd (ASX: DBF) will seek to capitalise on the increasing demand for grain as a vital input into a range of staple food products, the alcohol industry and the livestock industry. The Company will look to generate income and capital gains for Investors through the operation of broadacre farms in Australia, that are positioned to benefit from potential increase in grain prices (among other commodity prices) and appreciation in land values.

The Company’s existing farm investment portfolio is valued at $58.335 million and comprises three properties located near Forbes in New South Wales, including Merriment, Wyalong and Yarranlea, as detailed below: 

4 The lease will expire on or before 31 December 2017 and will not be renewed.

Once listed, the Company is expected to be the only ASX listed vehicle of its type in Australia providing its investors with direct exposure grain production.

The Company’s main investment objectives are to:

  • provide a listed investment vehicle that gives investors direct exposure to a diverse commodity production portfolio
  • generate an income stream for investors from the yield of the portfolio in the form of dividends
  • provide capital growth over the long term and to benefit over the long term from the forecast appreciation in grain prices from their current historical record lows

Offer Overview

Duxton Broadacre Farms Ltd is looking to raise up to $22 million via its IPO, and will have an estimated market capitalisation of $66.1 million at maximum subscription.   The Company intends to generate an income stream for investors in the form of franked dividends. The Company will aim to pay out 40% to 60% of its operating profit to Shareholders annually from March 2019 onwards.

The proceeds of the Offer will be used to acquire farms that fit the farm investment criteria, pay for general working capital, to reduce debt and to pay the costs of the Offer and listing on ASX.

Company Objectives

The Company’s objective is to create a diversified portfolio of high-quality, efficient broadacre farms to capitalise on the growing demand for grains, livestock and cotton. The investment thesis is driven by long-term growth in global grain demand translating to significant operating margins and improved farmland values over time, providing shareholders with both ongoing annual operational yield and longer-term capital growth.  The Company’s key commodity exposure is to both domestic and international grain prices.

The Company mitigates customer risk by ensuring it is not selling all of its products to a single customer, and focusing on high quality counterparties.  The Company further manages risk by actively managing key operating costs, a developed commodity hedging strategy to minimise price risk, and diversification of operations across types of crops, livestock production, geographical regions, and water resources.

Operations Management

The Company has contracted Farm Managers to provide day-to-day management of the broadacre farms (subject to the Company’s supervision). The Company management team will supervise and report on the performance of the Farm Managers and be responsible for overall farm operations and administration. The Company’s management team will be responsible for the day-to-day administration of the Company.

The Company has contracted the Investment Manager to assist with the administration aspects of the investment management services, and to identify, assess, propose and execute the broadacre investments.

Investment Manager

The Company has entered into an Investment Management Agreement with Duxton Capital (Australia). The Duxton Group is highly experienced in the alternative assets investment sphere has in excess of A$720 million in assets under management or advice, of which A$535 million comprises agricultural investments. Its agricultural assets are diversified across 21 operations spanning 540,000 hectares of farmland over 30 commodities and five continents.

Board and Management

The Board is highly experienced in the agricultural sphere, with a combined 109 years’ experience amongst them in investing and managing agricultural businesses. This experience extends across both Australian and international agriculture.  The board includes:

  • Ed Peter, CEO and Lead Portfolio Manager – with over 30 years’ experience, Ed was the former head of Deutsche Asset Management Asia Pacific, Middle East and North Africa.
  • Tony Hamilton, Director - has been farming since 1982 and has extensive experience in managing broadacre properties.
  • Stephen Duerden, Director - former COO and Director for both the Complex Assets Investments Team and the Singapore operation of Deutsche Bank Asset Management Asia.
  • Mark Harvey, Independent Director and Deputy Chairman - has more than 35 years of experience in agriculture and agribusiness.
  • Wade Dabinett, Independent Director - has over 13 years' of experience in the Australian grain industry, encompasses grain trading, storage, handling and production.

 

As set out in Section 7 of the Prospectus, Duxton Broadacre Farms Ltd is subject to a range of risks, including but not limited to adverse weather conditions, commodity prices, input costs and illiquidity.

 

Section 734(6) disclosure: The issuer of the securities is Duxton Broadacre Farms Ltd ACN 129 249 243. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

IPO
Pharmaceuticals
$0.20
Size of Offer $15-20 million
Minimum Bid $2,000.00
Opening Date 28/11/2017
Closing Date 16/03/2018

Applications for the Rong Yu Pharmaceuticals IPO have closed via OnMarket.  The company has extended the offer until 16 March.

Rong Yu Pharmaceuticals Limited (ASX: RY8) is a well-established business involved in the development, manufacture and sale of prescription and over the counter (OTC) pharmaceutical products based on principles of traditional Chinese medicine (TCM).

The Company manufactures and packages its five Rongyu Products in-house before delivering them to over 300 wholesale distributors for distribution throughout 28 Provinces across China.  With the increasing demand for TCM both in China and overseas, following successful completion of the Offer, the Company plans to expand its business activities in the Asia-Pacific region beginning with Australia.

Chinese Provinces where the Company's products are distributed

The Company has enjoyed strong growth with revenue increasing from A$41.5 million in FY2015 to A$71.4 million in FY2017. Net profit has increased from A$11.9 million in FY2015 to A$19.3 million in FY2017 with a net profit margin of 27.0%.

Offer overview

Rong Yu Pharmaceuticals Limited is looking to raise up to A$20 million via its IPO, and will have an estimated market capitalisation of A$80 million on the maximum subscription of the IPO offer.  The Company intends to pay up to 20% of NPAT as unfranked dividends each year commencing from 2018.

The Traditional Chinese Medicine Market

TCM is a national treasure in China and has been used for several thousand years. TCM products are typically made from natural herbs and are considered as alternative remedies to Western medicine products in China. They are believed to be better for curing the root cause of the illness and for strengthening the immune systems.

The TCM industry in China is expected to reach RMB2,745 billion (A$546 billion) by 2019, with ongoing growth supported by a number key drivers, including:

  • support by various government policies which encourage participation, training, investment and development
  • China’s large and gaining population
  • Increasing urbanisation and disposable income in China
  • Growing global acceptance and use of TCM

Rongyu Products

The Company produces 5 core pharmaceutical products that are developed based on principles of traditional Chinese medicine. The products enjoy a good reputation among customers due to the strict supervision and control the company imposes. The products have been approved for sale by the Chinese Food & Drug Administration (CFDA) and are currently sold across 28 Provinces in China.

The Company’s two core products, focussed on lowering cholesterol, and treatment of women’s anaemia, contributed over 80% of sales in FY2017.

Business Strategy

Post IPO, the Company's primary focus will be:

  • to further penetrate the Chinese market through existing and new distributors
  • to secure herb supply to ensure greater supply reliability and improved margins
  • to establish business operations in Australia to expand distribution and leverage further supply opportunities with a view to further expanding its business internationally

The Company also intends to acquire land usage rights for a parcel of agricultural land in Fuzhou City, Jiangxi Province, China to cultivate some of the herbs required in the production of the Company's products.

Board and Management

The Board and senior management have a broad base of experiences covering operational, technical, corporate and commercial backgrounds spanning a number of decades across a range of different industries and includes:

  • Rod Hannington, Non-Executive Director – has over 15 years’ experience in marketing and strategy services in consumer health and fast moving consumer goods in the Asia Pacific region.  Rod is also the Executive Director of the ASX listed company, Eagle Health Holdings Limited
  • Rongyu Ye, Executive Director – was an executive member of the SME Council in Fuzhou and currently a member of the National People’s Congress, and vice-chairman of Sole Traders’ Council.

As set out in Section 6 of the Prospectus, Rong Yu Pharmaceuticals Limited is subject to a range of risks, including but not limited to reliance on suppliers, regulatory risk, PRC land tenure system, agricultural risk and certification and licences.

 

Section 734(6) disclosure: The issuer of the securities is Rong Yu Pharmaceuticals Limited ACN 617 647 293. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

Disclaimer: All information on this section is of a general nature. Before making any investment decision, please seek the relevant advice.

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