Carbon fibre road wheel manufacturer Carbon Revolution (ASX:CBR) made a spectacular debut on the stock exchange after raising $90.1 million and listing on the ASX.
The Geelong company’s $2.60 shares soared immediately reaching as high as $3.81, before closing at $3.55 with a market capitalisation of $450 million.
The stunning debut caps off the company’s run of success since founding in 2008 as OEM supplier of single piece carbon fibre wheels to high profile customers from Ferrari to Renault and Ford, plus an as yet un-named SUV customer.
Thirteen times stronger and 40 per cent lighter than aluminium, the company’s wheels are impacting the aerospace and automotive markets.
Backed by a deep technology relationship with Deakin University, Carbon Revolution got its big breakthrough in 2015 with the selection of its ultra lightweight wheels as standard on the Ford Mustang Shelby GT350R.
Now as a public company it is targeting increasing production from 12,000 wheels a year to 32,000 by June, 2020.
CEO Jake Dingle said: “The additional capital from the IPO will be invested in industrialisation and scaling the manufacturing process to reduce costs and increase production capacity.”
While the company booked a net loss of $22.4 million in 2019, it is on track to be EBITDA positive in the fourth quarter of 2020.
Picture: Carbon Revolution/Ford Mustang
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