IPO - Irexchange Limited, page-6

Haven't decided whether to bid yet but $11m cash receipts fy18 after only two years running and hundreds of sign-ons suggests a company with some proof of concept and not just the usual promise of huge revenue to come. Management looks very strong and again, not just in the usual way "A1 management team" is bandied around with rubbish specs and guys who achieved something 8-10 years ago are taking a NED role.

But you're also paying for that proof of concept and management team, with a starting ev of $60m. Burn rate is also likely to be high, which will be essential for them to expand the grocery business into other states (currently all revenue coming from just NSW/VIC), overseas expansion and move into pharmacy sector.

If they get continued traction, I could see the stock becoming a speculative growth favourite for instos that play in that sector, as they won't need to capture the Lion's share of the sector to see strong growth. Cash burn will be forgiven in the short to medium term if that growth is on display.

Leaning towards a half bid now and see how it opens.

Has anyone met with management?