IPO - UUV Aquabotix Ltd, page-204

Wouldn't let me put up in a new thread, but got a write up this morning on TheBull

http://www.thebull.com.au/premium/a/67042-ipos-with-great-stories.html

UUV Aquabotix Limited (UUV) is yet another US company choosing to introduce its stock via the ASX.  The company’s high tech story is compelling – underwater drones in a variety of flavors currently operating in 45 countries around the world, per the company’s website.

Aquabotix began in 2011 manufacturing unmanned underwater vehicles (UUV). In addition, the company makes commercial grade networked underwater cameras and accessories.  The IPO Prospectus states Aquabotix generated $1.1 billion in sales during the calendar year 2016, an 80% increase over 2015.

The company’s products are supported by its proprietary software.  Aquabotix claims to be one of the few companies in the world offering hybrid UUV’s capable of remote or manned operation.

Sales revenue is augmented by software upgrades, customer training, and data analysis tools as well as extended warranties.  The market for UUV’s ranges from the military to the oil and gas sector as well as the aquaculture and marine construction

The commercial market for these vehicles is relatively new and Aquabotix has chosen to focus on middle market customers needing cost effective vehicles for what management describes as “everyday workhorse” applications.

Funds from the IPO will address a key risk identified in the Prospectus – the rapid change of UUV technology – by increasing R&D expenditures as well as expanding its sales force.

It remains to be seen what share of the middle market Aquabotix can grab, but the overall market demand has an impressive growth forecast.