IPO Outlook: MOB, STBX

By Kirsteen Mackay

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This Week’s upcoming IPOs include Mobilicom (MOB) and StarBox Group Holdings (STBX) to list on the NASDAQ stock exchange. 

In our upcoming IPO coverage for this week, we look at ASX cybersecurity stock Mobilicom and advertising fintech stock StarBox.

Mobilicom (NASDAQ: MOB)

Mobilicom (NASDAQ: MOB) is due to list up to 1.5 million share units on the NASDAQ via IPO IPO sometime this week. 

The company already lists its shares on the Australian Stock Exchange (ASX) under the symbol MOB. If the listing starts at a price similar to its ASX listing, it would equal approximately $7.43 per share of common stock. The company will list its common stock on the NASDAQ Capital Market under the symbol MOB.

MOB's prospectus states the company will issue up to 1,589,226 stock units, each consisting of one American Depositary Share (ADS) and one warrant to purchase one ADS.

What Does Mobilicom Do?

Mobilicom Ltd of Israel provides cybersecurity and smart solutions. The company designs, develops and delivers solutions focused primarily on targeting global drone, robotics, and autonomous system manufacturers.

The firm holds patented technology & know-how for Mobile Mesh networking. Its customers include corporates, governments, and military departments. The company was founded by Oren Elkayam and Yossi Segal in 2006 and is headquartered in Shoham, Israel. 

Mobilicom serves customers worldwide.

MOB Investment Risk Factors

  • The company has a history of losses, and the ASX listing of Mobilicom has lost 82% since 2017.

  • Mobilicom expects its operating expenses to increase as the business grows, including expending substantial resources for research, development, sales and marketing. 

Who is Leading the MOB IPO?

ThinkEquity is the broker/dealer leading the MOB IPO.

Use of MOB IPO Proceeds

The company estimates that its net proceeds from this offering will be around $10.2m (after deducting estimated underwriting discounts and commissions and remaining estimated offering expenses) or approximately $11.8 million if the underwriters exercise their option to purchase additional ADSs in full.

Mobilicom plans to use the net proceeds from this offering to provide funding for the expansion of its sales and marketing activities, research and development, and working capital.

It believes the raise and its existing cash will be sufficient to fund its current operations for at least 12 months from the date of this prospectus. 

StarBox Group Holdings (NASDAQ: STBX)

StarBox Group Holdings (NASDAQ: STBX) is due to list 5 million shares on the NASDAQ via IPO on August 24, 2022.

StarBox shares will be offered in the range of $4 to $5. Therefore, the implied Market Capitalization at IPO is $202.5m, given the midpoint of this range.

What Does StarBox Do?

StarBox Group Holdings Ltd. operates as a holding company. Through its subsidiaries, StarBox builds cash rebates, digital advertising, and a payment solution business ecosystem targeting micro, small, and medium enterprises that lack the bandwidth to develop an in-house data management system for effective marketing.

The company connects retail merchants with individual online and offline shoppers to facilitate transactions through cash rebates offered by retail merchants. The firm also provides digital advertising services to retail merchants and payment solution services to merchants.

StarBox businesses include GETBATS, PAYBATS, and SEEBATS.

During the fiscal years ended September 30, 2021, and 2020, the GETBATS website and mobile app had 723 and 478 Merchants, respectively, and a total transaction amount of $2,501,913 and $74,867, respectively.

The company was founded on September 13, 2021, and is headquartered in Kuala Lumpur, Malaysia. StarBox Group Holdings serves customers worldwide.

STBX Investment Risk Factors

  • A substantial majority of company revenue comes from providing digital advertising services to retail merchant advertisers. This helps drive consumer demand, increase sales, and achieve operating efficiencies. Thus, the company's relationships with its advertisers primarily depend on its ability to deliver quality advertising services at attractive volumes and prices. If advertisers are dissatisfied, they may reduce their spending or move elsewhere.

  • A severe or prolonged slowdown in Malaysia's economy and threats of political unrest could adversely affect the business. 

  • Starbox's revenue primarily comes from digital advertising services on its website and apps. It must continue to retain and build member data to grow the required traffic.

Who is Leading the STBX IPO?

Network 1 Financial Securities, Inc. is the sole underwriter leading the STBX IPO.

Use of STBX IPO Proceeds

The StarBox Group is using the power of technology to improve businesses of micro, small and medium enterprises and local consumers.

The company expects to receive net proceeds from this IPO offering of approximately $19,685,001 if the underwriters do not exercise their over-allotment option and $22,956,744 if the underwriters exercise their over-allotment option in full.

It intends to use the net proceeds in approximately the following way:

  • 60% to expand the business into other countries in Southeast Asia

  • 20% for upgrading our software and systems

  • 20% for promoting company brands in Malaysia

Management will have significant flexibility and discretion to apply the net proceeds of this offering in a way they see fit.

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In this article:

Topics:
IPO
Industries:
Information Technology

Author: Kirsteen Mackay

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Kirsteen Mackay does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Kirsteen Mackay has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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