On the first day of Listing Swoop Stock, swooped a massive 120% higher to a 52week high of $1.33 a share and a market cap of just over $200million, within hours of completing their backdoor listing. So we take a look and see, Will the share price of Swoop Stock (SWP.ASX) explode in 2021?

Funds from the capital raising will be put towards expanding Swoop’s infrastructure nationally and potential acquisitions to grow its products and customer reach.

Who Are the Directors?

The leadership team of Swoop comes with an impressive array of Directors, James Spenceley (The Founder of Vocus Communications), Amcom founder Tony Grist (Ex Accenture, and Cirrus Communications) and Matt Hollis (Ex Superloop, Vocus and Pipe Networks)

The leadership team is extremely impressive and these group of indiviudals has an outstanding track record of building companies and getting significant uplift for the shareholders.

Who Are the Top Holders?

On the day of listing Swoop (SWP.ASX) published their Top 20 Holder statement. Very interesting that Twiggy Forest’s investment company Tatterang has a massive 19.7% stake in the company with additional options as per the prospectus. It’s also worth pointing out that James Spenceley the Non-Executive Chairperson also has a significant 3% stake in the company.

Forrest Capital also have 1.5million options at an exercise price of $0.75

Swoop Stock
T20 Holdings statement Swoop

The leadership team have performance options that exist as part of this IPO. The performance options seem to provide a good indication of where the team want to take the company. Swoop and NodeOne achieving aggregate Sales Revenue1 of $30,000,000 over two consecutive half-year periods, with the second half-year period ending within the three-year term of the performance rights.

From the above, the team have big ambitions and are looking to substantially lift revenue over the next three years up past an aggregate of 30million.

What Business Does Swoop (SWP.ASX) Operate In?

Swoop, formally known as Cirrus Communications, was founded in 2004 and operates 220 towers across the country with 110 staff. Swoop currently has the capacity to supply 64% of the Australian population. Swoop operates one of the country’s largest fixed wireless networks with 246 towers spread across all states and has plans to build more towers and seems to have an appetite to acquire rival operators.

Within the next 12-24 months Swoop is looking to add an additional 2.6million people to their existing population coverage.

Swoop Coverage: Source company Prospectus

A key point as highlighted in the prospectus is that the group is not linked to the NBN, nor roadblocked by fixed wired networks. The group is able to operate independently of NBN and is able to operate and acquire access to, network services at a lower cost enabling the Group to deliver more competitively priced products than NBN serviced providers;

The group operates in both the wholesale, residential, and business sector.

Current Share Price and Cap

The Swoop Share Price (SWP.ASX, SWP ASX) currently trades on the Australian Stock Exchange at a price of $0.92 a share and a market cap of 109million.

The company reported a total underlying EBITDA of 2.3million for 1H21. You can quickly see where the business gets its valuation from by extrapolating the half year numbers.

Mr Spenceley said there could be a round of consolidation in the sector similar to the period late in the 2000s and early in the 2010s when the likes of Vocus, TPG and iiNet were making acquisitions.

Prophets Take Swoop Stock

Prophet has secured a significant portion of shares to hold in their portfolio for the long term. We like the experience of the leadership team, the growth prospects of the company and the delinked nature from the NBN infrastructure which should allow the company to offer very competitive products to their customers.

Check out the Prophet Public Portfolio Here

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