Gooroo Ventures Aims to Revolutionise Staff Recruitment
Gooroo has signed pilot agreements with a number of companies and plans to launch its recruitment software platform in November 2016.
Australian software and technology firm Gooroo Ventures seeks to raise $5million and list on the ASX on 19 october 2016.
Anyone working in recruitment would probably agree that it is time consuming and difficult to hire good talent. While it may be easy to hire someone quickly, it is challenging to find a suitable person for the respective role. Gooroo Ventures is developing software, which is meant to facilitate hiring and the company believes it will save time and money.
Gooroo Ventures Limited initially planned to list on the ASX via a Reverse Takeover (‘RTO’) through Petratherm Limited (ASX:PTR), but as a result of issues arising with Petratherm’s geothermal well in South Australia, both parties agreed the terminate the share sale agreement. Gooroo Ventures targets now to list via conventional IPO raising $5m.
Gooroo Ventures is an information technology company focused on human resources. Gooroo is building an online marketplace designed to facilitate hiring prospective candidates for vacancies. The company aims to generate revenue through a subscription based model and by commercialising complimentary products within the Gooroo ecosystem.
Gooroo has signed pilot agreements with a number of companies and plans to launch its recruitment software platform in November 2016. Successful commercialisation and rollout of the platform will be the primary share price driver. Gooroo has established a three-year partnership with Microsoft which provides a platform to build brand reputation and drive client acquisition. The total number of signups on the online talent community is growing at 30% per month. However, operating history, reliance on external capital and competition are primary risks.
While the successful commercialisation could trigger a re-rating of the stock price, there is no guarantee that there will be sufficient demand for Gooroo’s technology. Even though the valuation is undemanding, participants in the float should be aware the that IPO is speculative in nature.
Company: Gooroo Ventures Limited
ASX Code: GOO
Shares on Offer: 25m
Listing Price: $0.20
Market Capitalisation: 12.3m
Listing Date: October 19
Author: Simon Herrmann
Sep 19, 2016
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.