The Placement pricing represents a 5.3% discount to the last traded share price of $0.76 on 15 June 2021. Demand for the placement was three times in excess of what was sought, with a strong level of institutional participation that included many notable Australian funds.
Since listing on the ASX on 29 January 2021, Pentanet has focused on the disciplined execution of its Fixed Wireless and Cloud Gaming growth strategy. Pentanet say they have delivered strong +20% growth in subscriber numbers with low churn, high ARPU, and improving gross margins. They claim to have increased market awareness driven by targeted marketing activities and a focus on superior network performance and customer service.
Pentanet said that it has continued to invest in network deployment and the development of Terragraph mmWave wireless mesh technology that will significantly increase network accessibility and performance with gigabit speed capability. Further they say since the IPO, Pentanet has also been successful in securing a 15-year licence for high band 5G spectrum in the 26 GHz auction conducted by the ACMA. This investment will result in significant advantages for the network and an accelerated deployment of Terragraph technology in Pentanet’s ‘Project Gigalink’.
Pentanet also said that market interest in GeForce NOW Powered by Pentanet - the Australian deployment of NVIDIA’s cloud gaming service - has exceeded initial expectations since its announcement on 27 January 2021. As a result, the it has significantly expanded the planned pilot infrastructure rollout and put in place an upgrade capability to accelerate the network deployment where market demand continues to support this.
The new funds will be primarily used to accelerate the disciplined execution of the Company’s Fixed Wireless and Cloud Gaming growth strategy. Central to this strategy is the deployment of Terragraph and GeForce NOW infrastructure to drive industry leading performance capability and to build a unique telecommunications and gaming platform in the Australian market, Pentanet stated.
Pentanet managing director Stephen Cornish said "It is good to see the strong support from investors, highlighting an increased level of understanding around the relationship between cloud gaming and 5G, now enabling us to move Pentanet into the next stage of growth early. It is a fast-developing market and we have taken advantage of market opportunities in both our Fixed Wireless and our Cloud Gaming services to strengthen our capabilities.
"Our team will continue to show that we are leaders in these developing services, and the highest tier when it comes to providing subscribers with industry leading internet performance and delivering on what will be Australia's best and most anticipated high-quality Cloud Gaming service.
"I would like to thank both our existing, and our new investors, for their support and confidence in our business, and we look forward to continuing to deliver on our growth plans in the coming months and quarters, for all involved, both customers and stakeholders."