A UK start-up that streams live television and video content to mobile devices is set to become the latest technology business to float in London.
SyQic, headquartered in Gerrards Cross, Buckinghamshire, will today announce its intention to sell shares on the London Stock Exchange’s junior market.
The nine-year-old firm is hoping to raise around £15 million when it debuts on AIM on 2 December, according to legal firm Bird & Bird who advised the mobile TV and video supplier on its AIM IPO.
SyQic CEO Jamal Hassim said: “SyQic's listing will support the company in the next phase of its growth."
The company is currently focussed on the Asian market but plans to launch in the UK at the end of this month, followed by mainland Europe, Indochina, Myanmar, Singapore, Pakistan and Bangladesh. It then plans to launch in the US towards the end of 2014.
Today, SyQic's main audience base can be found in the Philippines, Indonesia and Malaysia.
The company has been profitable for each of the past three financial years and its revenue grew from £987,000 in 2010 to £3.9 million in 2012, when it also made a pretax profit of £625,000.
SyQic believes the market for internet television will boom in coming years and expects global revenues to increase from an estimated £5.6 billion this year to £30.87 billion in 2017.
There have been concerns in the UK that too many British tech start-ups are listing on markets outside London, particularly those in New York such as the NYSE and Nasdaq.
However, the SyQic float follows a number of recent tech listings in London, such as that made by domain provider CentralNic and mobile gaming services provider 24/7 Gaming.
Following the CentralNic announcement, Richard Holway, chairman of analyst firm TechMarketView, told Techworld that he was “delighted” to see CentralNic choose AIM but pointed out that it’s only a “tiddler”.
“What we need is a flow of $1 billion-plus IPOs like they get in the US,” he said. “Indeed, the $1 billion prospects from the UK – like Shazam, Sophos etc – all seem to be eyeing Nasdaq instead. We need big IPOs to get the media, the analysts, the funds and the investors really interested.”
At the time, Holway also pointed out that since 2000 there have been more companies removing themselves from the UK’s markets than listing. However, Holway believes the UK is making progress thanks in part to the incentives and tax breaks available on AIM.
“The Enterprise Investment Scheme and the Seed Enterprise Investment Scheme are fantastic for angel investors in UK private tech start-ups,” he said. “Venture Capital Trusts have great tax breaks too. You really wonder what more HM Government can do.”