Rail Vision Ltd is an Israeli company focused on train safety. The IPO underwriter is Aegis Capital Corp.
What is Rail Vision?
Rail Vision focuses on train safety, security maintenance and accident prevention on the rail track.
The company is a leading provider of cutting-edge cognitive vision sensor technology and safety systems for the railway industry. It uses artificial intelligence (AI) to build detection and identification systems.
Rail Vision’s solutions offer detection and classification of objects or obstacles. These include humans, vehicles, and signals. It also provides rail path recognition via switch state detection, distance measurement and opportunity infrastructure monitoring.
Four individuals founded Rail Vision in 2016. It has 60 employees, including 46 R&D personnel.
Notably, the company won the Deutsche Bahn MINDBOX competition.
And it boasts Knorr-Bremse, a world leader in train systems, as a strategic investor in Rail Vision.
Furthermore, the company has signed a contract to supply Rio Tinto with demonstrations on its autonomous GoA4 freight trains. This is in addition to a paid proof of concept testing period for a North American railway construction company.
RVSN IPO Details
The RVSN IPO was priced on March 30, 2022, and the share listing is expected on March 31, 2022.
3.79 million shares are offered at the price of $4.13. Gross proceeds from the IPO should amount to $15.6m.
With 15,616,668 basic shares outstanding, this means the Rail Vision market capitalization at IPO is $64.5m.
Use of Proceeds
The company plans to use the proceeds from its IPO for research and development, along with marketing, advertising, and pre-commercialization activities.
It may also use some for working capital, general corporate needs, and potential in-licensing of additional IP.
When will Rail Vision go public?
RVSN stock will go public on the NASDAQ stock exchange on March 31.
How does RVSN make money?
For the six months ended June 30, 2021, Rail Vision generated revenues of $417k and incurred a net loss of $5.1m.
These revenues came from the sale of a prototype and additional services for an operational field test.
Financials
Rail Vision has received $44m in investment, including around $24m from Knorr-Bremse.
The company achieved $5m in net cash flows for operating activities in the first half of 2021.
It had a cash balance of $6.8m as of June 30, 2021.
Key Shareholders
Knorr-Bremse (ETR: KBX) is a publicly-traded German company. It is a world leader in braking and peripheral systems for trains and trucks. Knorr-Bremse is a 39% shareholder in Rail Vision. This is a lucrative association and could potentially lead Rail Vision to access many blue-chip customers globally.
Meanwhile, the company founders own 15% of the company, Foresight Autonomous Holdings Ltd (TLV: FRSX) owns 19%, and other investors own 27%.
Growth Potential
Rail Vision intends to sell its systems and services, along with maintenance, warranty and system updates. It focuses on international operators of passenger trains, freight lines and operational locomotives.
The company is also looking to sell big data solutions, which should create recurring revenue opportunities.
Rail Vision believes its systems will potentially enable significant savings of hundreds of millions of dollars by preventing problems before they occur.
Risks to Investing in Rail Vision
There are risks associated with investing in development stage companies. Rail Vision has limited operating history and has incurred significant losses in R&D since its inception.
