ASX aspirant engage: BDR closes books, set for October IPO
US digital advertising business engage: BDR has closed the books on its October float more than two times oversubscribed, sources told Street Talk.
It's understood that Melbourne-based small caps firm OC Funds Management will emerge among institutional investors on engage: BDR's register.
The company is set to list on October 6.
But not all investors saw upside in the company's story.
A fund manager contacted by this column noted that engage: BDR had made a small profit in just one of the past four years. His concerns also centred on a decline in revenue and a high cost base.
"Programmatic ad-serving needs to very high scale to be commercial and I don't think this company has that, albeit is looking to achieve it through acquisitions," the fund manager said. Engage: BDR was co-founded by ex-MySpace marketing and strategy head Ted Dhanik, who is also its chief executive. He has lured MySpace co-founder Tom Anderson to join its board.
The company was seeking to raise up to $6 million at 20¢ per share, giving the business a market capitalisation of $46 million upon listing. The float is being managed by Sanlam Private Wealth.
The engage: BDR business model is based on its proprietary technology which sees the company purchase internet video and display advertising inventory from website publishers which it on sells to advertisers.
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Not all positive, lets see how it goes.. oversubscribed but we often know that means nothing... eg CLI!
