Sydney human resources software provider Elmo has had a good first day on the Australian Securities Exchange after its initial public offering this month.
The company raised $25 million at $2 per share from the float, but on Thursday the stock finished its first trading day on the ASX at $2.50.
“We are one of the quiet success stories of Australian technology with a tremendous market opportunity in front of us,” Elmo chief executive Danny Lessem said Thursday.
Elmo originally started making an e-learning platform, but has now expanded out to develop systems that manage recruitment, education and performance appraisal activities for businesses throughout the entire lifecycle of each employee.
Its cloud-based “talent management software”, competing against big names like Oracle and SAP, is sold on a subscription basis to mid-sized businesses.
Its IPO market capitalisation of $108 million made it the biggest public float by an Australian tech company this year.
“Now that our IPO is complete, we are excited to put our heads down and focus on executing our growth strategy,” said Lessem.
“Our subscription-based software solves an important HR administration and talent management issue for our customers.”
Elmo intended to use the new cash to enhance its sales and marketing, develop new products and potentially pull off acquisitions, “in a disciplined way”, of complementary HR software providers and intellectual property.
Elmo, established in 2002, is headquartered in Sydney with branch offices in Melbourne, Brisbane, Perth, Canberra, Auckland, Wellington and Singapore.