06 December 2016 – Dreamscape Networks Limited (ASX code: DN8) is set to make its debut on the ASX on Wednesday, 7 December at 11.30am WST, following a highly successful Prospectus offer that raised $25 million. The offer was fully underwritten by Canaccord Genuity Australia and was heavily oversubscribed by local and overseas institutional investors.
At the IPO issue price of 25 cents per share, the Company will have an initial market value of $86 million, with approximately $17.5 million cash at bank and no debt. The Company believes it is in a strong position to pursue its growth strategy of international and domestic expansion by acquisition, new product development and entry into new markets.
As part of the IPO process, Dreamscape acquired the domains, hosting and solutions businesses operating under the brands of “Crazy Domains”, “Cheap Domains” and “AustDomains”. According to the Company, the Crazy Domains brand holds the number one position in Australia for registration of .au domain names, with approximately 30% market share of the .au domain market.
Dreamscape’s global head office is in Dubai Internet City, however its origins and core business are very much based in Australia. The company commenced business in 2000 from the spare bedroom of then house-mates, and now major shareholders Ryan Tabbara (Founder) and Mark Evans (Managing Director and CEO) in a suburb of Perth. In those days the business grew organically, with only basic online marketing but all of that changed in 2009, with the launch of a major traditional media campaign to promote the Crazy Domains brand.
In 2010, Crazy Domains had become the number one .au domain brand in Australia. Like many fast growing businesses however, the Company did not have a clear vision, formal management, reporting and governance systems in place to ensure long term success. Customer satisfaction was poor and the Company, while growing, did not have an organised structure to control and monitor key business metrics. In January 2012, Mark Evans joined Dreamscape to lead the process of improving customer satisfaction and providing a corporate structure around the business to cater for long term growth and internationalisation. Mark quickly moved into the Chief Executive Officer role and has been instrumental in building a ‘best in world’ customer care centre in Cebu. In the four years to 2016, customer satisfaction has increased from just 52% to over 86% in 2016, with further improvement since year end resulting in consistent results over 91% satisfaction. In addition, new and improved infrastructure and senior management have bolstered the Company’s ability to manage a new phase of growth.
Today, Dreamscape focuses its business in Australia, New Zealand, UAE, the United Kingdom and India with new markets emerging in English speaking Asian countries. The Company’s head office is in Dubai, with product development teams in Kiev and Perth and customer care and support in Cebu, Philippines. In the lead up to the IPO, Dreamscape has also put together a board of directors with considerable acquisition and growth expertise. Macquarie Telecom and Nearmap Chairman and former iiNet board member, Peter James, joins as Chairman, along with iiNet founder and NBN board member Michael Malone and long term corporate adviser to Dreamscape, Perth based Evan Cross joining as non-executive directors.
“Since those early days we have matured into an emerging global business” Mr Evans said. “We believe the time is right to introduce some capital to the business via the IPO process, an experienced board and pursue our global growth objectives. It is exciting for us to welcome our new board and new shareholders as we prepare to list on the ASX”.
Dreamscape’s prospectus reveals that it is forecasting 2017 bookings (cash revenue) of $55 million, up from $50 million in 2016 and cash earnings (Adjusted EBITDA) of approximately $11 million up from $7.9 million in 2016.
For more information contact:
Mark Evans – Managing Director | Phone: +61 8 9422 0894 | Email: email@example.com
About Dreamscape Networks Limited
Dreamscape Networks Limited is a leading online solutions provider of domain names, hosting and solutions and owns Australia’s #1 domain brand Crazy Domains. The Dreamscape Networks Group offers simple, innovative and affordable online solutions that help businesses build and manage their online presence. Our solutions are innovative, user-friendly and engineered across all platforms embracing intuitive design and backed by our focus on best in world service.