Australia: New South Wales-based property management company Alloggio Group is seeking to raise AU$16.5 million in investment before it goes public via an initial public offering [IPO] on the Australian Securities Exchange [ASX] on 29 November.
Alloggio – which is Italian for accommodation – is due to issue 82.5 million new shares at $0.20 per share, and is focusing on using the capital to pursue organic growth opportunities and acquisitions as the Australian tourism market recovers post-Covid. In addition, the investment will be directed towards funding business development and marketing, in-house technology and platform development, and operating costs.
Chair John Murphy wrote in the company’s prospectus letter: “The fundamentals for Alloggio are attractive as it has a proven business model in a large addressable market where there will be increasing demand for short-term rental accommodation.”
The prospectus also read: “During 2021, Alloggio has also been able to secure significant revenues from a number of regional NSW local health districts through the short term licensing of regional hotels for Covid-19 accommodation purposes.”
Alloggio, which operates both holiday property management and mid-market hotels business divisions, manages 879 homes, units and apartments, listing them on the likes of Airbnb, Expedia and Trivago, as well as on its own direct booking platform called Winning Holidays.
Founded in 2015, the company was expected to reach a valuation in the region of $50 million when the planned float was first announced last December.
Alloggio believes that it is well positioned to address a domestic short-term rental market that is worth an estimated $7.3 billion per year to Australia’s economy.