The software company Touchcorp Limited (ASX:TCH) debuted on the ASX today. Technology developed by the Bermudian based company can be used in cash registers and for mobile payments. The cloud-based technology is used by some convenience stores such as the 7-11 chain. Telstra, Optus, health care providers and some government branches also use it. The issued share price of TCH was valued at $1.40 per share. The shares jumped to $1.63 during its debut, a 16.4 per cent increase. The shares have since retreated slightly to $1.54, but still up 10 per cent, an hour past noon on Tuesday. Touchcorp offered 40m shares on its debut and has a market capitalisation of around $162.3m.
Touchcorp is a smaller company that has seen some success in a sea of big players. The cloud technology industry has seen $13bn worth of mergers and acquisitions during a period of high growth since 2012. Despite the small user base, the software company has seen strong demand from its existing clients. The company’s patented intellectual property know as the “Touch System” facilitates the delivery of non-physical products, services and entitlements to its clients. After being founded in 2000, the Touch System is now used by more than 36,000 clients in Australia and Europe. Sales and earnings are expected to rise again in FY2015 at double-digit rates. Touchcorp reported a net profit of $7.4m and revenue of $41m. Although the company is profitable, it has yet to forecast a dividend payout. The Cleeve brothers,Andrian and Keith, have put a strong backing into the company. Andrian Cleeve is the current managing director.