Affärsvärlden advises against subscribing to travel booking company Avionero’s IPO on Spotlight Stock Market. This is stated in a comment on Tuesday.
Avionero owns no travel data. Flight offerings are sourced from Skyscanner, which is also one of the competitors in the market.
The Malmö-based company has spent eleven years and SEK 54 million building a flight search engine. Revenue for the past six months amounted to SEK 136,000 and operating profit was negative SEK 4 million. The company is now raising SEK 7 million in new capital, but that will hardly be enough for the company to take off, the newspaper assesses.
Affärsvärlden identifies ten warning flags and one note in its review of IPOs. These concern high issuance costs, questionable incentives, a short financial history, unusual agreements, weak finances, future capital needs, a discounted issue shortly before the listing, excessive focus on trends and the outside world, inadequate information, hard-selling/sloppy communication, and the fact that Avionero is considered an immature company.
The shares are to begin trading on Spotlight on 13 October. The subscription price is SEK 18 per share and the last day for subscription is 30 September.
