ikeGPS Secures A$18M Placement at A$0.81 per Share with Additional SPP

Equity Raise to Fuel Innovation and Growth

ikeGPS Group Limited (IKE), a leading software provider for electric utilities and communications companies, has announced a significant equity raising of approximately A$20 million. This comprises a fully underwritten institutional placement of around A$18 million and a non-underwritten share purchase plan (SPP) targeting up to A$2 million. The capital injection is designed to accelerate the development of two next-generation subscription software modules, enhance sales and marketing efforts, and provide financial flexibility for strategic acquisitions and working capital needs.

Strategic Product Development with Customer Collaboration

Building on the commercial success of its PoleForeman product, IKE is collaborating closely with an extended customer council that includes some of North America's largest investor-owned utilities. This partnership is guiding the design of new software modules aimed at significantly improving how utilities capture, digitize, and manage their distribution networks. The company anticipates these innovations will deliver over fivefold productivity gains for customers and more than double subscription seat revenue through value-based pricing models, reinforcing IKE’s position as a market leader.

Robust Financial Performance and Market Opportunity

IKE reported a strong FY25 performance, with total revenue reaching NZ$25.2 million, driven by a 48% year-on-year increase in subscription revenue and a 103% growth in subscription seats. Recurring revenues now constitute 87% of total revenue, underscoring the company’s subscription-based business model. With a gross margin improvement to 69% and an adjusted EBITDA loss narrowing to NZ$6.2 million, IKE is on track to achieve EBITDA breakeven on a run-rate basis in the second half of FY26.

Market Leadership in a Growing North American Utility Sector

IKE serves over 400 customers in North America, including eight of the ten largest investor-owned utilities, collectively serving approximately 43 million homes and businesses. The company currently penetrates about 6% of its addressable market, with significant white space for growth through cross-selling and new customer acquisition. This opportunity is underpinned by massive infrastructure investments exceeding US$400 billion projected over the next five years, driven by federal initiatives and the transition to electrification.

Underwriting and Share Purchase Plan Details

The placement shares will be issued at A$0.81 each, representing a modest discount to recent trading prices, and will rank equally with existing shares. The SPP offers eligible shareholders in Australia and New Zealand the chance to purchase additional shares up to A$30,000 or NZ$32,500 respectively, at the same price. The placement is fully underwritten by Shaw and Partners Limited and Unified Capital Partners Pty Ltd, providing certainty of capital raised. The SPP is non-underwritten, with applications subject to scale-back at IKE’s discretion.

Risks and Forward Outlook

While the equity raise positions IKE well for growth, the company acknowledges risks including cybersecurity threats, competitive pressures, execution of its growth strategy, intellectual property protection, and market volatility. Nonetheless, IKE’s management remains confident in its strategy to maintain market leadership and capitalize on the accelerating electrification and infrastructure modernization trends in North America.