AXS Group Limited has extended its IPO given changes made to its terms for its proposed listing as requested by ASX. The Company is preparing a Supplementary Prospectus that will be lodged with the Australian Securities & Investment Commission (ASIC) shortly.
AXS remains positive on the group’s revenue outlook and the growth of its client base, as evidenced by the terms reached with Industrial Alliance in Canada as previously announced here.
AXS Group Limited (ASX Code: AXS) is a global software provider of hosted, SaaS and cloud-based solutions to clients in the financial services and operates an end-to-end process architecture for clients in the wealth management sector. The company has a track record of successfully tendering and integrating businesses into its ARMnet software with approximately over 75 third party systems integrations performed for clients with varying customised solutions found. The ARMnet platform uses cognitive processes, including robotic process automation and blockchain techniques to give real time output, reducing time and cutting costs.
AXS provides its clients with a digital transformation through its internally owned and developed software platform, ARMnet. The ARMnet platform is a customer relationship management (CRM) financial product management solution that is built on an industry standard Microsoft dot.net framework. It enables clients to improve business efficiency, productivity and accountability, while lowering the costs and risks in delivering different kinds of financial services solutions.
On completion of the IPO, AXS Group will complete the acquisition of Axcess Consulting Group Pty Ltd the operating entity, which is a global integrated software solution provider to the finance, insurance and funds sectors and has grown organically and operated for over 13 years.
AXS Group Limited is looking to raise $6.5 million with an option to accept another $500,000 in oversubscriptions and will have an indicative market capitalisation of approximately $25.0 million at maximum subscription.
The proceeds of the offer will be used to:
AXS provides clients software services for varying business sectors including a strong position in the non-bank software lending market. These clients are geographically spread across North America, Europe and Asia-Pacific region. The business is characterised by strong recurring revenue and high levels of client retention, being approximately 90% since inception. The ARMnet platform is currently used to manage over $100 billion of assets and transactions for clients worldwide.
AXS Group Limited revenues are generated by subscription and licensing, maintenance, personalisation and servicing fees, typically charged in accordance with agreed rates set out in service agreements with each respective client. Subscription and licencing revenues are recurring annuity revenue streams that contribute approximately 50% to total revenue.
The table below provides an overview of the types of fees charged by AXS.
Technological advances continue to develop in the back office which now offers the financial services industry the ability to do things more efficiently and cost effectively. The Company is to be a key driver in this market and from its ARMnet technology platform, operates two business lines: Platform Product Solutions and Service Solutions. The platform uses cognitive processes, including robotic process, automation and blockchain techniques to give real time output, reducing time and cutting costs.
AXS product offering is divided into 7 product modules on a subscription basis and 3 user services modules on the ARMnet platform. More modules will be introduced upon identification of further market opportunities with each based on pricing.
The AXS Group currently focuses on providing its software platform solution to the wealth management industry, which involves businesses that provide investment services and financial advice, with the objective of supporting clients to grow their individual wealth. This includes business processing centres, mortgage providers, trustees, asset managers, family offices, private investor groups, public offer funds, and self-managed superannuation funds (SMSFs). As of June 2016, there were approximately 8,200 active businesses in Australia involved in financial asset investing, and approximately 4,000 superannuation funds (excluding SMSFs). There are almost 600,000 SMSFs, 1,500 charitable trusts that manage investments and over 25,000 active financial advisers.
AXS can be viewed as a provider of disruptive technology in the financial services sector, in which large companies, such as Fiserve and FIS Global, have traditionally dominated. Globally, total Information Technology (“IT”) expenditure is projected to total US$3.7 trillion in 2018, an increase of 4.5% from 2017. Corporate business software use continues to exhibit strong growth, with worldwide software spending projected to grow 9.5% in 2018, and it will grow another 8.4% in 2019 to total US$421 billion.1 Organisations are expected to increase spending on software in 2018, with more of the budget shifting to software as a service (“SaaS”).
AXS Group’s growth strategies include:
The AXS Group is led by a well-credentialed and balanced Board and management team with experience in the financial services, information technology and software development industries. This includes:
You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. As set out in Section 8 of the Prospectus, AXS Group Limited is subject to a range of risks, including but not limited to reliance on key personnel, risk of significant control by Existing Shareholders, replicability of business model or failure to retain existing clients and attract new clients.
Section 734(6) disclosure: The issuer of the securities is AXS Group Limited ACN 619 705 207. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).
OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.
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Update: AXS has extended its IPO given changes made to its terms for its proposed listing as requested by ASX. A Supplementary Prospectus will be lodged with ASIC shortly.
AXS Group Limited (ASX Code: AXS) is an integrated software solution provider to the finance, insurance and funds sector. With over 40 clients in Australia, North America, Europe and Asia they are focussed on helping clients with their digital transformation, reducing time and cutting costs. The Company’s cloud based ARMnet platform currently is used to manage over $100 billion of assets and transactions that are accessible via smart phones, tablets or email from anywhere at any time.