Energy management software company BuildingIQ is set to list on the Australian stock exchange in a move that could see the company valued at around $100 million.
The company, whose core technology was developed by CSIRO, is understood to be reaching break-even point after strong revenue growth in the past few years. It is now working with KTM Capital on an initial public offering, likely to be launched in the coming months, a report in The Australian Financial Review said on Wednesday.
The company, which has featured several times in The Fifth Estate, just completed a $US2.7 million venture funding round, which follows a 2013 round where $9 million was raised, with investors including Aster Capital (backed by Schneider Electric), Alstom and Solvay, the venture capital unit of Siemens Financial Services, and Paladin Capital.
According to the AFR these investors are not expected to sell into the float, with BuildingIQ looking to raise growth capital to expand its operations.
Last year, The Fifth Estate reported that after trying to crack the US market, BuildingIQ was shifting focus towards Australia, where chief executive Michael Nark said there was a better opportunity to create “win-win partnerships”.
“There is a deeper commitment to ‘green’ in Australia than in the US,” he said. “Over there some places are focused on it, such as pockets of California and the north-east states, but elsewhere [in the US] it is really not mainstream.”
The company has shown much promise from when it was created in 2009 to commercialise CSIRO energy optimisation software for buildings. Venture capital company Exto Partners – which expects around 50 per cent return for its private and institutional investors – quickly took note, picking the company as one of its start-up investment favourites.
Its software uses algorithms to predict and manage HVAC loads in commercial buildings, leading to energy cuts of up to 25 per cent.
“Basically it interfaces with the existing [building management system] in the building. It acts like an autopilot for the BMS, continually optimising energy consumption and cost,” former chief executive Mike Zimmerman told The Fifth Estate back in 2011, saying energy efficiency was an area that would see an increasing focus, particularly if it could be done with little up-front investment.
Mr Zimmerman left BuildingIQ in December 2014 and is now managing director of Bondi Venture.
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