LiveHire Goes Public to Fast-Track Development of HR Software
LiveHire has witnessed early interest for its product and has a ‘first mover’ advantage in the industry. The company has secured 38 clients to date which has resulted in first revenues.
Australian technology company LiveHire Limited targets to list on the ASX on 3rd June to accelerate development of its HR software.
LiveHire estimates that the average cost to hire talent in the US equals $4,000 as available technology is not efficient enough in an ever-changing marketplace. LiveHire seeks to solve this issue with its ‘Talent Community’ software, a cloud-based online software application which assists employees with tasks related to Human Resources (HR) and recruitment. The platform is an online ecosystem for employees and employers and automatically matches talent with job opportunities, thus saving both cost and time. The company was founded in 2011.
LiveHire has witnessed early interest for its product and has a ‘first mover’ advantage in the industry. The company has secured 38 clients to date which has resulted in first revenues. There is scope for exponential growth as the subscription model is recurring in nature and incrementally linked to the size of the client’s network.
LiveHire does not presently generate sufficient revenue to fund its daily activities and development plans and remains reliant on external capital. The valuation incorporates a certain degree of business success which is not guaranteed. While the company has demonstrated its ability to secure clients, the commercial potential remains to be validated.
LiveHire offers speculative exposure to demand for software in the HR sector. Early growth and existing client network are attractive qualities, while funding and valuation risks present the primary hurdles. The company offers an innovative technological solution to a sector that has witnessed little development to date and LiveWire’s cloud based platform has the potential to generate recurring revenue stream and establish an exponentially growing ecosystem. However valuation risks appear significant and the listing appears somewhat premature as the company has yet to demonstrate revenue momentum.
Details of the IPO
Company: LiveHire Ltd
ASX Code: LVH
Shares on Offer: 50m
Listing Price: $0.20
Market Capitalisation: $40m
Listing Date: June 3
This publication appeared first on The Australian.
Author: Simon Herrmann
May 10, 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.