Online screening software company CVCheck will list on the Australian Securities Exchange this month in a bid to raise funds required to accelerate business growth.
The CVCheck system significantly speeds up the time it takes for employers to conduct police and background checks on prospective employees by automating the process. Under existing systems, users are required to mail handwritten forms. CVCheck offers 700 different checks in more than 150 countries.
The small technology company will have a market cap of $36.9 million on listing. Its shares will start at 20¢.
"We've been growing organically at about 9.5 per cent month-on-month since December 2013 and we expect that to continue or accelerate," founder Steve Carolan told Fairfax Media when the company announced its intention to list in early July.
"In five years' time, do you think people are going to wait for a piece of paper in the mail? In the next one to two years we intend to change the way everyone gets their police checks."
The company also offers traffic record checks and business interests and bankruptcy checks, as well as worker's compensation claim checks. Other services include employment and qualification confirmation. Individuals and companies can use the site, but most orders are from companies.
The Perth-based company brought in $2.6 million in sales in financial year 2015. It has forecast revenue to grow to $6.3 million by June 2016.
CVCheck intends to raise between $7.2 million and $11 million from its initial public offering. More than 80 per cent of the funds will go towards product development and growth strategies. The company intends to invest almost $5.5 million in marketing in the coming year.
The company has grown steadily for years but Mr Carolan hopes the marketing strategies will drive the company forward significantly.
The prospectus predicts an almost five-fold increase to its net cash position, from $2.4 million to $11.2 million, within a year.
These strategies will rely, partly, on attracting traffic to the company website, something the prospectus lists as a key risk.
"The company's revenue depends upon attracting sufficient traffic to its website. The level of traffic directly influences the number of new users, an important driver of revenue growth," the prospectus said.
The company is led by Mr Carolan. He launched CVCheck in 2004 after leading Access Home Loans, a mortgage broking company.
Mr Carolan received funding from the federal government's former business development arm, Commercialisation Australia, under their Experienced Executive grants in 2012.
CVCheck chairman Chris Brown has previously served as chairman for food and beverage company Preshafood. Prior to that, he was a director in a range of investment banking firms, including Rothschild Australia and Merrill Lynch, as well as director and chairman of Senetas, an online encryption company.
The prospectus said CVCheck had no immediate intention to declare or distribute dividends.
The company will offer subscription of 51 million new shares, and an additional 4 million existing vendor shares after $10.2 million has been raised. Those selling the existing vendor shares include chief financial officer Rod Sherwood, who will retain 53 per cent of his shares.
CVCheck will join the ASX at 11am on Monday, August 17.
