Audience Analytics Limited: What you need to know

Audience Analytics Limited (Audience Analytics) has officially launched its Initial Public Offering (IPO) on the Catalist of Singapore Exchange on 14 September 2021.

In this article, we will be looking at some of the key highlights for this upcoming Catalist IPO.

Details of Offering

Audience Analytics will be placing out 26.0 million ordinary shares at S$0.30 which comprises of:

• 18.2 million new shares
• 7.8 million vendor shares

Based on the offer price and enlarged post-IPO share capital of 168.2 million shares, Audience Analytics’ market capitalization will come in at around S$50.46 million.

The application list opens on 14 September 2021 and closes at 12.00 noon on 28 September 2021.

Audience Analytics expects to commence trading on the Catalist of Singapore Exchange on a “ready” basis at 9.00 a.m. on 30 September 2021.

Corporate Profile for Audience Analytics

Established in 2002, Audience Analytics offers a range of solutions that give companies a better understanding of their businesses so they can make better decisions and promote and grow their businesses.

Through its various business segments, the Group offers a wide portfolio of awards, exhibitions, conferences, digital and print media and business analytics that enable the Group to support companies at different stages of their growth.

The business segments are as follows:

• Business Impact Assessment and Recognition Segment
• Exhibitions Segment
• Business Media Segment
• Business Intelligence and Growth Analytics Segment

Group Structure

Management Team

Datuk William Ng is the Group’s Chairman and Managing Director. He assumes the overall responsibility of overseeing the Group's business performance, managing the growth of the Group, and setting the overall strategic direction. Datuk William Ng has over 22 years of experience in the business impact assessment and recognition, marketing, media, and exhibitions industries.

Dato’ Ryan Ooi is the Group’s Executive Director. He plays an important role in managing the Group’s operations, including providing creative and operational direction to the Group’s operations. Dato’ Ryan Ooi has over 19 years’ experience in the marketing and exhibitions industries.

Historical Financial Performance

For FY2020, Audience Analytics’ revenue declined by 8.8% year-on-year too S$7.62 million, mainly due to a decrease in revenue from its Exhibitions Segment and Business Media Segment, and partially offset by an increase in revenue from its Business Impact Assessment and Recognition Segment.

Despite the topline decline, Audience Analytics’ profit after tax grew by 28.9% year-on-year to S$2.94 million, on back of a higher gross profit, due to a substantial decrease in its cost of sales.

On a whole, despite a slight fluctuation for its revenue in the past 3 years, the company’s net profits have grown considerably from S$2.1 million in FY2018 to S$2.9 million in FY2020. When we take a closer look, we noticed that the jump in profits was a result of signification drop in cost of sales.

The lower cost of sales was attributed mainly to the cost savings from the ‘Venue/Production/Performance’ costs which probably indicates on the physical-online shift during this pandemic situation.

Dividend Policy

The Group currently does not have a fixed dividend policy. The declaration and payment of future dividends may be recommended by the Board at their discretion, after considering several factors, which include:

• The Group’s level of cash and retained earnings.
• The actual and projected financial performance
• Working capital requirement and general financing conditions.

Despite that, Audience Analytics intends to recommend and distribute dividend of at least 50% of the Group’s net profit attributable to Shareholders for both FY2021 and FY2022.

Use of IPO Proceeds

Audience Analytics intends to utilize the net proceeds from the upcoming IPO towards the following purposes:

• Development of the Group’s Business Intelligence and Growth Analytics Segment
• Expansion into new geographic markets and new industry verticals and functional specialisations
• Digitalisation of its existing business operations
• General working capital

Business Strategies & Future Plans

In conjunction with this IPO, Audience Analytics has laid out some of its upcoming business strategies and future plans.

Firstly, it intends to enhance its business analytics capabilities by acquiring new talents, new IT infrastructure and big data capabilities to improve on in-house research, user interface/ user experience design and development capabilities.

On the other hand, the Group will expand into new geographic markets and introduce new awards within and outside of existing industry verticals and functional specialisations through brand extensions or launching new brands in other new markets.

In terms of inorganic growth, Audience Analytics intends to grow its business through acquisitions, joint ventures and strategic alliances to strengthen market position and enhance service offerings that are complementary to its existing business.

Looking at its organic growth, the Group will leverage on existing customer base to optimize sales strategies by offering complementary products and services across all business segments and different geographic markets.

Lastly, Audience Analytics will move to digitalize its business operations and tap into new growth channels, including fully digitizing business-to-business media products to grow its subscriber base.

Risk factors for Audience Analytics

While we see potential in the upcoming growth of Audience Analytics, we also noted some risks according to their prospectus including:

• Potentially being affected due to changes to the terms of the licences or if any of the licences are terminated or not renewed
• Exposed to risks of outbreaks of communicable diseases such as the recent COVID-19 pandemic
• Dependent on maintaining the reputation of the Group’s branding.

Conclusion

In summary, below are some competitive advantages that Audience Analytics has to offer:

• Established track record and strong market reputation
• Diverse range of products
• Scalable and asset-light business model
• Established presence across Asia
• Experienced and competent management team

Upon its listing, Audience Analytics would be in a good financial shape to undertake its future growth plans. That said, investors should also take note of the firm’s inherent competitive landscape and the fluid nature of the COVID-19 situation.

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