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Security Matters shares gain value after company IPO

The blockchain company’s lead technology was developed by the Israeli Government and allows tracking of items through a supply chain.
Security Matters founder andCEO Haggai Alon
Security Matters was founded by CEO Haggai Alon

Security Matters Limited (ASX:SMX) closed at a 2.5% premium today on listing on the Australian Securities Exchange today.

More than 2 million shares in the brand protection, supply chain integrity and blockchain technology company changed at a 2.5-5% premium to the 20-cent price of shares in its prospectus for an initial public offering (IPO).

READ: Stealth Global Holdings makes debut

Earlier today the Israeli company reported it was starting trading with a “strong pipeline of commercial opportunities in the advanced stages of discussion and a positive short-term outlook”.

The company raised $6 million from investors, including 370 new shareholders, with an oversubscribed prospectus for an IPO.

Today its shares reflected the IPO backing, with a $123.3 million market capitalisation.

Among its assets is technology to hide a chemical-based barcode and reader among outgoing items to track their movements through a supply chain, provide quality assurance support, and store and protect data ownership on blockchain.

The Israeli Government had developed and proven the technology which Security Matters now holds rights to and has expanded its use to non-defence applications which it owns outrights.

READ: Euro Manganese gives hope for IPOs with stellar debut

Security Matters highlighted Allied Research had put the size of the global anticounterfeit market of 2015 at US$1.77 trillion.

A number of proof-of-concepts trials have been undertaken which the company said demonstrated the broad appeal of its technology and the commercial potential of putting it to use with global manufacturers.

Security Matters founder and CEO Haggai Alon said: “We are proud to be the 18th Israeli company to have listed on the ASX and I’d like to thank Australia for welcoming us with open arms.

“The Australian markets not only offers a financial structure but is also a market where our technology can thrive — Perth Mint is only the beginning.”

Perth Mint is paving a yellow brick road for blockchain on Australia’s west coast.

READ: IPO Wealth Fund attracts $50 million in investments and is well on way to $100 million

Alon said today: “The ASX has given us a house and we intend on making the Australian markets our home.

“I would like to thank our shareholders, both existing and new, for your overwhelming support during this process.

“Your board and management team are focused on the successful commercialisation of our unique technology and building long-term value for our shareholders.”

Security Matters’ operating expenses were $2.6 million last year.

It has previously indicated it planned to start paying down a US$500,000 loan from major shareholders which attracts 4% annual interest rate, once it listed on the ASX.

Security Matters said today it expected a number of positive commercial outcomes over the coming months as discussions it was holding with several parties about potential opportunities came to fruition.

The company’s securities closed up 0.5 cents, or 2.5%, to 20.5 cents.

 

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