The Nuix Limited (ASX: NXL) share price has continued its remarkable post-IPO rise and zoomed higher again on Monday.
In fact, at one stage today the analytics software provider’s shares jumped a massive 37% to a record high of $10.95.
When its shares hit that level, it meant they were up over 105% from their IPO listing price of $5.31.
The Nuix share price has since given back the majority of those gains but is still up a sizeable 14% to $9.15 at the time of writing.
What is Nuix?
Nuix is a leading investigative analytics and intelligence software provider. This software has been used by customers around the world to process, normalise, index, enrich, and analyse data from a multitude of different sources.
This includes for a number of important investigations such as the Panama Papers, the Banking Royal Commission, organised crime rings, corporate scandals, and terrorist activities.
The company’s customer base includes government agencies, regulators, corporations and professional services firms.
Why has it undertaken an IPO?
Nuix launched its IPO this year in order to raise funds to fuel its growth plans and to allow shareholders to realise a portion of their investment.
Nuix Chairman, Jeff Bleich, explained: “The purpose of the offer is to broaden Nuix’s shareholder base and provide a liquid market for its shares; repay existing indebtedness and provide funding and financial flexibility to support Nuix’s growth strategy and future growth opportunities; provide Nuix with the benefits of an increased brand profile that may arise from being a publicly listed entity; and provide existing securityholders with an opportunity to realise a portion of their investment in Nuix and fund the cancellation of options exercisable before completion of the offer.”
In respect to its growth strategy, the company is seeking to expand its presence across geographies and in targeted industry verticals. It aims to do this by winning new customers, employing an industry‑centric “land and expand” strategy across industry verticals, continued investment in functionality of the Nuix platform, and improvements in overall operating efficiency and extracting potential benefits of increased scale.
Management also believes that growth can be accelerated by focusing on building a network of strategic partners to provide complementary delivery and market expansion capabilities, as well as through a considered approach to value accretive mergers and acquisitions.
In FY 2021, the company is forecasting total revenue of $193.5 million, gross profit of $166.7 million, and EBITDA of $63.6 million. This represents year on year growth of 10%, 7.4%, and 14.6%, respectively.
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Returns as of 6th October 2020
More reading
- Why Fortescue, Metcash, Nuix, & Xero shares are storming higher
- ASX 200 goes up on Friday
- The Nuix (ASX:NXL) share price zoomed 69% higher following its IPO
- $1.7 billion Aussie tech company finally lists on ASX
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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