Boku, a United States-based carrier billing company, listed on the London Stock Exchange’s Alternative Investment Market (AIM) recently, has raised up to £45 million in stock in their IPO.
This case is particularly interesting because Boku is only actually worth around a few hundred million dollars, a staggeringly small amount compared to the technology giants that have initiated their IPO in years past. So how Boku pull this through, and why?
Taking a look at the numbers, Boku has boasted full-year revenue numbers of $14.2 million, $15.2 million, and $14.4 million in 2014, 2015, and 2016, respectively. Evidently, growth is high for Boku, and shows improving profitability.
Another interesting point is Boku’s market. While it is a US-based company, with headquarters in the United States, Boku has decided that its trading market is in fact London, miles across the sea. While this sort of practice isn’t unheard of, it is somewhat strange to see a venture-backed, US based company going public for the first time abroad.
Still, the London Stock Exchange has commented that this IPO shows that “LSE…has a track record of offering small and micro companies access to high quality capital at lower cost and reduced regulatory burden relative to US public markets. It also shows VC shareholders can diversify funding for portfolio companies and often achieve partial exit through a London IPO.”