Newcastle start-up Camplify listed on ASX in $ 11.5 million IPO

Camplify founder Justin Hales. Origin: supplied.

Australian startup Airbnb-for-campers Camplify has been listed on the Australian Securities Exchange in an $ 11.5 million IPO, after the COVID-19 pandemic left the domestic travel industry ripe for disruption.

Founded in 2015 and based in Newcastle, NSW, Camplify is essentially a caravan Airbnb, allowing owners of RVs, RVs and other homes on wheels to rent them out to vacationers.

The startup filed its prospectus in May, with an offering price of $ 1.42 per share, giving the company an enterprise value of $ 42.1 million upon completion.

The IPO has been oversubscribed four times, raising a total of $ 11.5 million, with strong interest from institutional and retail investors.

And stronger-than-expected growth in the first half of the year allowed the team to update their earnings guidance for the year.

Now, Camplify expects the gross value of the transaction for fiscal 2021 to exceed $ 30 million, compared to the $ 27.8 million forecast in its prospectus.

Revenues are expected to reach between $ 7.3 million and $ 7.6 million, compared to the projected $ 6.7 million.

The success of the IPO represents an excellent result for Camplify, which now trades under the CHL ticket. But for founder and CEO Justin Hales, it’s no surprise.

The company has experienced an average revenue growth of 88%, year-over-year over the past four years.

Now the opportunity is ripe to continue this growth path, he says.

“We have the market conditions in our favor,” he explains.

“We are in an industry which, from a tourism perspective, is not as affected by COVID as others.”

The pandemic has posed a challenge for the entire travel industry. For a company like Camplify, a slight increase inner journey has resulted in increased demand.

At the same time, we are seeing the late closure of state borders, hampering local travel plans and also hurting consumer confidence across the industry.

“It’s definitely a challenge,” Hales says.

“We have had to constantly keep our customers informed… and be flexible with them. “

That said, the founder says Camplify bookings have increased during lockdown times.

Campers are self-sufficient and offer ultimate flexibility, he explains. Even if restrictions appear while you are on the road, you can still change direction.

“An incredible opportunity”

After 12 to 18 disrupted months in the travel industry, Hales predicts that things will start to move again soon enough. The catalyst, he says, will be the deployment of the COVID-19 vaccine.

The less locks needed, the more confident people will become and more adventures will be booked.

And even when international borders finally reopen, he doesn’t think Camplify will see a drop in bookings.

First and foremost, the service offers a safe option for those who still feel cautious.

But the company has also always been constrained by supply, not demand, he explains. There are generally more people looking for vans to rent than vehicles available.

“As we grow our van network, we will be able to meet this demand,” he says.

The IPO allows Camplify to take advantage of the opportunity and accelerate its expansion plans.

“We felt the business was at a level of maturity in terms of operation, and from a business perspective, to be able to meet this next challenge,” Hales said.

Many of the startup’s clients have also expressed interest in investing in the business.

Part of the plan is to increase Camplify’s presence abroad. A fleet is already on the ground in New Zealand, perfectly placed to meet the demands of Australian travelers as soon as they can cross the divide.

The startup is also strengthening its position in the UK and Spain, as European markets begin to see signs of recovery.

And he also has new products in the works.

For Hales, the IPO represents the start of the next step in Camplify’s journey.

“We are really proud… and optimistic for the future,” he says.

“Now we have an amazing opportunity to really take this thing to the next level. “

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