IPO Fact Sheet: Parkd Limited (ASX: PKD)

IPO Fact Sheet: Parkd Limited (ASX: PKD)

 

Overview

Parkd (ASX: PKD) is the developer of a proprietary lightweight concrete car parking system. Characterised by its modular components, the ‘Parkd Car Park System’ may be deconstructed and transferred between locations. It also provides optimal efficiency for internal space, and can be reused or altered such that it caters for up to six levels of parking.

The primary benefits of the car park system stem from the lower costs and reduced turnaround associated with prefabrication. Despite being manufactured offsite, the system conforms to the relevant structural engineering requirements for the industry. Parkd has also been granted an innovation patent, with a provisional patent covering the structure of the system.

From a commercial perspective, revenue may be earned by leasing the system, licensing the system, or through owner-operator arrangements for individual developments. Parkd will continue to develop and commercialise the system, while also targeting sales agreements with end users through increased marketing and client engagement.

To date, Parkd has signed a delivery contract with a Subaru dealership in Perth for a single level car park on a ‘trial’ basis. Beyond its primary target market for retail car dealerships, the company intends to promote its parking solution to a wide range of industries where it may be used temporarily or permanently. These markets include the following applications: hospitals, shopping centres, car park operators, airports, universities, public transport hubs, and construction sites.

 

Offer Details

The IPO will see 30m new shares issued at $0.20 per share, for a raise of $6m. No oversubscription facility will be run, and the offer is not underwritten. Mac Equity Partners will act as Lead Manager for the IPO, which subject to full subscription, is scheduled to close November 24.

 

Investment Highlights

  • The Australian car park market is currently defined by technological advancements, however there is insufficient supply and precast concrete car parks do not yet exist locally
  • During 2015–16 parking services revenue within Australia was $1.422bn
  • New car sales in 2016 were 1.17m, across 5700 dealerships
  • There were 18.2m registered vehicles in Australia at June 30 2016, with demand growing
  • CBD based employment continues to rise, while inner city vacant land is increasingly scarce
  • The company has sought to protect its intellectual property via patents
  • Revenue may be generated from various large target markets via different income models
  • The Parkd system offers end users a significant reduction in costs and development time
  • The business has secured its first commercial agreement and has several potential leads
  • Company founders still involved and a Board with direct industry experience

 

Use of Funds

Following the IPO, Parkd plan to use the majority of proceeds to develop its car parking system over the course of two years. Other funds have been set aside for corporate administration and working capital during this timeframe, as well as the costs of the IPO.

 

Capital Structure

Before the offer, 41.4m shares were on issue to existing investors, including founders and directors. Upon listing, PKD will have a market cap of $15m, which includes a $9m enterprise valuation.

Among the existing shares, those issued to related parties on a non-cash basis will be subject to 24 months escrow from the time of their listing. Some of those issued to non-related seed investors will be escrowed for 12 months from the time they were issued.

Options issued to directors, founders and the Lead Manager have an exercise price of $0.30, with an expiry date of December 1st, 2020. An additional maximum of 18.725m entitlement options may be quoted on the ASX and issued to investors based on loyalty conditions 3 to 6 months after listing. These entitlement options will be issued on a 1:4 basis for $0.01 each, with an exercise price of $0.30 and an expiry date of December 31st, 2019.

 

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The information contained on this website in no way reflects the opinions of IPO Society. It is provided for informational services only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. The information is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. Detailed information may be needed to make an investment decision, for example: financial statements; a business plan; information about ownership of intellectual or industrial property; or expert opinions including valuations or auditors’ reports. The information contained on this website is not intended to be the only information on which an investment decision is made and is not a substitute for a disclosure document, product disclosure statement or any other notice that may be required under the Act, as the Act may apply to the investment.

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IPO Fact Sheet: Parkd Limited (ASX: PKD)
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