Download the Prospectus
Pre Money Equity Valuation
$165,811,138
Min Raise
$42,351,834
Max Raise
$42,351,834
Estimated Close
2019-08-12
Issue Type
IPO
Lead Manager
Morgans Corporate Ltd
Type of Securities
Shares
Date First Lodged
15/07/2019
Offer Costs $
$3,400,000
Market Cap Max
$208,162,972
Key Executives
Allan Brackin (Chairman and INED), Paul Cross (CEO and MD), David Redfern (NED), Kenneth Ogden (INED), Greg Adcock (INED), Jennifer Douglas ( INED)
Company Address
Unit 5, 297 Ingles Street Port Melbourne VIC 3207
Stockbroker's Snapshot
Fibre-to-premiser telco provider
Exchange
ASX
1st Day VWAP
3.4
Chairman's Letter

Dear Investor,
It is my pleasure to invite you to become a Shareholder
in OptiComm, a licenced Australian wholesale
telecommunications carrier specialising in the design,
installation, operation and maintenance of Fibre-to-thePremises (FTTP) network solutions for new residential
and business developments in Australia.
In 2005, current CEO, Paul Cross, and Non-Executive
Director, David Redfern, together with other founders,
saw a market opportunity for a privately owned builderowner-operator of Fibre-to-the-Premises networks in
Australia. OptiComm has since grown to become one of
the largest privately owned and operated open access
Fibre-to-the-Premises wholesale network operators in
Australia for new developments by number of lots.
The power of the internet has increased substantially in
the past decade and has impacted on many facets of our
lives. Given network connectivity is so readily available,
we can at times take it for granted and forget how
ingrained it is in everyday life. Data usage has increased
dramatically over the past few years, with the average
monthly consumption of fixed broadband data per fixedline subscriber having increased by over 60% between
June 2016 and June 2018,1
and is forecast to continue
to grow with increasing usage of video streaming and
other entertainment services by consumers and cloud
services by businesses.2 Furthermore, as the ‘Internet of
Things’ and the number of internet-connected devices
grows rapidly, so will the amount of internet traffic they
generate. We at OptiComm understand the importance
of network connectivity and the revolutionary impact
a fully connected ‘smart’ world can offer, and we take
great care in ensuring all of our communities (specifically
those in new estates) have access to a 100% fixed-line
fibre broadband service.
Our business is driven by the ever-increasing consumer
appetite for internet connectivity which requires fast
and reliable bandwidth services within residential,
commercial and retail market segments.
As at 30 June 2019, OptiComm had installed fibre
network infrastructure to over 106,000 lots in 245
estates and buildings across Australia. Over 76,000
dwellings built on these lots are connected to the
OptiComm networks, with over 60,000 of these
dwellings receiving active internet, telephone and other
telecommunications services provided by Retail Service
Providers from whom OptiComm receives a monthly
recurring wholesale access charge for use of its fibre
network infrastructure.
OptiComm is forecasting to install fibre network
infrastructure to approximately 18,000 lots in FY2020
and in addition has a strong contracted pipeline of over
100,000 lots for delivery over the next 5 to 10 years.
OptiComm expects organic growth to continue,
supported by the growing consumer demand for
high-speed internet connectivity and ongoing demand
for fixed-line fibre telecommunications infrastructure.
This growth is also supported by regulation requiring
the installation of fibre network infrastructure in new
residential developments. We are proud of our track
record of growth with pro forma revenue forecast to
grow at a cumulative annual growth rate (CAGR) of 9%
between 2017 and 2019 and pro forma net profit after
tax (NPAT) forecast to grow at a CAGR of 19% over the
same period. In FY2019, we have reached a milestone
with forecast pro forma recurring revenue from our
fibre network infrastructure forecast to exceed forecast
revenue from our network construction activities and
become our single largest revenue stream. Importantly,
recurring revenue is growing year on year as we add
more active premises to the network. As a result pro
forma NPAT is forecast to grow at 18% in FY2019 and 10%
in FY2020. Free Cash Flow,3 after allowing for investment
in network infrastructure, is forecast to be $9.4 million in
FY2019 and $11.5 million in FY2020.
Leading this growth, OptiComm has a strong and
experienced management team and Board, with highly
relevant telecommunications industry experience
across various areas of the business. CEO Paul Cross
brings over 20 years of expertise in the fibre optic and
telecommunications market and previously founded
Optimal Cable Services, an Australian manufacturer of
fibre optic cables.
An offer is being made under this Prospectus to raise
approximately $42.35 million. The offer comprises
an offer of New Shares (approximately $14.08 million
before costs) and a sell-down of Shares by Existing
Shareholders (approximately $28.27 million before
costs). On Completion of the Offer, Existing Shareholders
will retain approximately 79.62% of the Shares in the
Company with Existing Shareholders escrowed for a
period of between 6 months and 2 years.
This Prospectus contains detailed information about
the Offer, the industry in which OptiComm operates,
its business and its historical and forecast financial
performance. OptiComm’s business is subject to a range
of risks both inside and outside its control, which are
discussed in detail in Section 5 and you are encouraged
to read the Prospectus in full and to carefully consider
the Offer.
I am truly excited to be working with OptiComm as
Chairman. The OptiComm business has strong growth
prospects in a dynamic industry. On behalf of my fellow
Directors and our management team, we look forward to
welcoming you as a Shareholder.
Yours faithfully,
Allan Brackin
Chairman