Alloggio raises AU$16.5m to go public via IPO on ASX
Australia: New South Wales-based travel technology platform and vacation rental management business, Alloggio, has officially gone public via an initial public offering [IPO] on the Australian Securities Exchange [ASX], raising AU$16.5 million at 20c a share in the process.
The company, which was founded in 2015, finished its first day trading on the ASX with a market cap of $33.1 million, although this was significantly below initial banker expectations of a $20 million raise and a market cap of $45 million. Shares in the firm fluctuated amid concerns over the Omicron variant, which threatens to disrupt travel plans ahead of the festive holiday season, as some states move to bring in additional restrictions on arrivals from overseas and limit interstate movement.
However, Alloggio founder and CEO, Will Creedon, told Australian Financial Review that the IPO was never in doubt: “There was absolutely no way we’d pull this IPO. Our data shows Australians are rediscovering regional Australia, and if that tail of booking locally here is pushed out even further, that gives investors a reason to be excited.”
Trading under the ticker symbol “ALO”, Aloggio plans to use the funds to expand both its Holiday Property Management and mid-market hotel divisions and acquire property management rights across Australia.
The former runs 879 holiday homes, units and apartments on behalf of homeowners, before listing them on third-party online travel agencies [OTAs], including Airbnb, Booking.com, Vrbo and its Australian sister brand Stayz. Meanwhile, the latter manages 13 mid-market hotels with 428 rooms, and a number of new holiday property management rights businesses are set to be acquired to scale up in areas within three hours of urban centres or airports.
The company reported 40 per cent revenue growth since 2019, recording $11.3 million revenue in the 2021 financial year, and EBITDA rose by 70 per cent to $4.7 million. Creedon indicated that this growth in revenue had been partly due to the popularity of domestic holidays, even despite the uncertainty posed by the Omicron variant.
Alloggio Group’s corporate brands include: Alloggio; Alloggio Hotels; Agile sites; Winning Holidays; Port Stephens Accommodation; Coffs Harbour Holiday Accommodation; Noosa Holiday Rentals; Mollymook Milton Holidays; Jervis Bay Rentals; and Verve Vacation Rentals.