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Singapore-based SportsHero, a social network dedicated to sports prediction, debuted on the Australian Securities Exchange today.
Investors snapped up the stock, sending it up 10 percent to A$0.055 per share at market close.
The company raised around US$2.5 million through the listing of 64 million shares at A$0.05 (US$0.04) apiece.
“The listing will give SportsHero access to both domestic and international investors and the proceeds raised will allow the company to advance the development and commercialization of SportsHero on an Asian and global scale, including developing ecommerce and engagement features for further monetization of the platform,” said co-founder and CEO Dinesh Bhatia in a statement.
“Over the next 12 to 18 months we will focus on customer acquisition, introducing additional sports and on enhancing the features and user experience, while sustaining strong engagement among users,” he added.
Building a community
Available in 164 markets, SportsHero lets users compete and interact through a mobile app to predict the outcomes of sports games, which allows them to progress within the community. Users can spend in-app “tokens” to take part in competitions. Particularly savvy players can earn from their expertise by providing insights to other players. Right now the app supports football (soccer) and plans to roll out cricket, basketball, and baseball this year.
The startup has 200,000 users engaging in the app.
The app is building an ecosystem that connects brands and sponsors to sports fan.
Reverse takeover
SportsHero’s listing came via a reverse takeover of mining firm Nevada Iron Limited. With Australia’s mining economy in decline, Dinesh said several listed companies in this industry serve as shells for businesses that want to go public.
A reverse takeover happens when a company that seeks to list acquires a majority stake in a company that’s already listed.
Singapore-based companies like digital media outfit Migme and, more recently, cloud backup provider Dropsuite have chosen to go down the reverse takeover route toward listing in Australia.
Converted from Australian dollars. Rate: US$1 = A$1.30.
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