The ASX has added another company to its trading boards today following the successful initial public offering (IPO) of HitIQ Limited (ASX: HIQ). At midday, the newly minted public company hit the ground running, opening 47.5% above its issue price of 20 cents per share.
HitIQ is a provider of hardware and software analytics that help better assist in the clinical diagnosis and ongoing tracking of head impact-related concussion injury data. Making all this possible is the company’s Nexus A9 mouthguard sensor technology.
Trying to get SaaSy with the AFL
Despite the company debuting as a small-cap, it has big goals. Its first commercial partner is the Australian Football League, which has entered a 3-year memorandum of understanding commencing for the 2021 season.
The objective is to create a league-wide head impact data bank. The agreement will extend to cover both the AFL and AFLW competitions in 2022.
HitIQ’s prospectus outlines that its aim is to operate on a software-as-a-service (SaaS) model. The company hopes to sell subscription licenses on a per athlete per year cost basis.
The first target market is other professional sports, while longer-term HitIQ will move to college sports and junior sporting codes.
Additionally, the company has its eyes on the United States market as another geography it’s seeking to break into.
The offer raised $10 million, which will go towards the company’s business strategies.
Good timing for HitIQ IPO
As mentioned in the prospectus, globally there is a growing concern surrounding the incidence of sports-related concussions and the potential associated health ramifications.
Last month, the National Rugby League (NRL) had a crackdown on illegal high contact which resulted in 14 sin bins and 3 send-offs. The Australian Rugby League Commission Chairman, Peter V’landys was ridiculed for the tightening standards, but hit back with:
My response to them is we have an obligation to our players and their welfare. I want our players to be able to leave our game with all their faculties … I make no apologies that we’re going to do everything in our power to keep the safety of our players.
There is a growing legal focus on the management of concussions in sports, particularly in the elite sector. Sporting codes are beginning to act. Likely due to the dramatic increase in lawsuits related to the mismanagement of head impacts by former professional athletes.
Following its IPO, the HitIQ share price retraced throughout the day, finishing 20% higher to 24 cents a share.
The post HitIQ (ASX:HIQ) share price charges 20% higher following IPO appeared first on The Motley Fool Australia.
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