Late this morning Nitro Software Limited (ASX: NTO) became the latest company to complete its IPO and hit the ASX boards.
This follows the successful listings of Tyro Payments Ltd (ASX: TYR) on Friday and Nuchev Ltd (ASX: NUC) on Monday.
Small business payments provider Tyro Payments listed at $2.75 per share and is now trading 24% higher at $3.41. This gives it a market capitalisation of $1.7 billion.
And goat milk infant formula company Nuchev listed at $2.60. Its shares have rocketed 44% since then and are changing hands at $3.75 today. This gives Nuchev a market capitalisation of $170 million.
How is Nitro Software performing?
Unfortunately, Nitro Software's shares haven't been able to follow the lead of Tyro and Nuchev.
Its shares listed on the ASX this morning at $1.72 per share, raising a total of $110.2 million. However, this afternoon they are trading 7.5% lower than the IPO price at $1.59.
And with 188.9 million on issue, this reduces Nitro Software's market capitalisation to $300 million.
What is Nitro Software?
Nitro Software is a global document productivity software company. It aims to drive digital transformation in organisations around the world across multiple industries.
Its core solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service and desktop-based software solution.
It allows knowledge workers to productively manage and process documents for many functions including editing, collaboration, storage and electronic signing.
According to its prospectus, in FY 2019 it expects to deliver revenue of US$35.4 million, gross profit of US$31.4 million, and a loss after tax of US$6.5 million.
The following year, in FY 2020, revenue is forecast to come in at US$40.5 million, gross profit is expected to be US$35.9 million, and its loss after tax is forecast to increase to US$7 million.
What about the future?
Management sees plenty of room to grow in the future.
It notes that research firm Forrester estimates that the serviceable available market for Nitro is US$5.5 billion and is expected to grow at a rate of 11% per annum over the next four years.
