Skip to main content

The health-tech company made an initial public offering (IPO) of $ 6 million in December, offering 30 million shares at $ 0.20 apiece for an implied market cap of $ 24.7 million.

Careteq Ltd (ASX: CTQ) has officially ringed the bell and hit the boards as an ASX-lister under the code ‘CTQ’.

The health-tech company made an initial public offering (IPO) of $ 6 million in December, offering 30 million shares at $ 0.20 apiece for an implied market cap of $ 24.7 million.

Careteq hopes to use the funding to accelerate its growth in the assisted living technology sector.

In that pocket, he’s developing cloud-based software-as-a-service solutions and a range of sensors to help improve the lives of older Australians and people with disabilities.

CTQ in figures

Careteq made its ASX debut at 11:00 a.m. AEDT on Monday after a $ 6 million IPO in December.

Thanks to the pioneering offering, the new ASX listing has issued more than 123.56 million shares, of which just under a quarter are held by new investors.

The implied enterprise value of the Health Technologies share stands at $ 15.9 million, while its pro forma net cash balance at the end of fiscal 21 was $ 8.9 million. dollars.

With $ 6 million from the IPO under its wing, Careteq intends to fund several key initiatives, including:

  • Technological development ($ 1.97 million);
  • Sales and Marketing ($ 1.2 million);
  • Operations ($ 685,000);
  • Staff ($ 330,000);
  • Working capital and corporate overhead ($ 1.76 million); and
  • Cover the costs of the offer ($ 670,206).

Careteq believes the funding provides sufficient lead to support its operations and help achieve its goals for the next two years.

Targeting the assisted living technology market

Careteq has a firmly trained eye on innovative technological offerings in the assisted living space.

In particular, its solutions are tailored to the care sector for the elderly and the disabled – an area that the health technology stock considers poised for a technological revolution amid several major obstacles.

Given an aging population in all major economies, a chronic staff shortage and the recommendations made by the Australian Royal Commission on the Care of the Elderly, Careteq believes the demand for assisted living technologies will continue to grow.

On the horizon, CTQ’s global addressable market is expected to be worth US $ 32 billion (approximately AU $ 44 billion) per year by 2026, with the Australian and New Zealand market estimated to be around AU $ 1 billion per year. year.

The company’s products and services, which improve outcomes for patients and their caregivers while increasing productivity, are sold in Australia and internationally.

Careteq generates revenue through recurring subscriptions to the platform, contracted drug management services and sales of its ranges of sensors and devices, which detect falls or unusual behavior, monitor patient health, provide SOS emergency call functionality and send medication reminders.

Its flagship product is the SOFIHUB portal, a holistic technology platform that integrates the above functionalities for people living in assisted living spaces.

SOFIHUB can be purchased from medical retailers and national brands like Harvey Norman Holdings.

The Careteq team

Careteq is led by a series of executives with decades of experience in the healthcare technology industry.

Company CEO Peter Scala and Non-Executive Chairman Mark Simari previously held key positions at Paragon Care Ltd (ASX: PGC) – one of Australia’s largest medical equipment companies.

Speaking on the company’s list today in a market announcement, CEO Scala said, “The global elderly and disability care industry is poised for technological disruption due to a need urgent productivity improvements.

“As the cost of caring for the elderly and the disabled increases, we believe this will prompt government and non-government funders to increasingly turn to technology solutions for assisted living, such as ours, to control costs and deliver better patient outcomes. “

President Simari echoed Scala’s comments: “Careteq is well positioned to capitalize on a major emerging technology trend and the forerunner advantage and persistent subscriber base gives us a long lead in increasing our recurring revenue and sales. of our unique devices and equipment to a global market.

“I am delighted to welcome all shareholders to the next phase of exciting and meaningful growth for Careteq. “