Following a successful IPO, welding service company K-TIG (ASX: KTG) has quickly gathered market momentum having reached a high of $0.65 in its first week on the ASX after raising $7m from their IPO Offer Price of $0.20.
The Australian-based company specialise in what they call, ‘WaaS’ (welding-as-a-service), a play on the more commonly used term, SaaS (software-as-a-service). The business model uses cloud-based technology, which can be remotely updated, allowing automatic services and capabilities to be delivered to the global installed customer base, ultimately eliminating the requirement of updates to be distributed physically. The company report their high-speed welding technology to be able to weld 100 times quicker than conventional TIG welding technology.
Chairman Stuart Carmichael said on the issue, ‘’The successful completion of the transaction and capital raising ensures we move forward rapidly with our growth plans.’’ CEO David Williams commented further saying “Such strong support for the offer demonstrates how highly the technology sector is regarded.”
K-TIG also reported that the recurring revenue model is in their focus and earlier today announced that they have achieved their first WaaS partnership since listing, with Precision Fabricators – a manufacturer of vessels to the semiconductor, pharmaceutical and chemical industries headquartered in Massachusetts, USA.
Under terms of the partnership, Precision Fabricators will adopt the licence revenue model, which will allow them access to K-TIG’s welding tech.
The license fee will be determined on the linear metres welded.
‘’We are committed to delivering on our growth strategy of disrupting the fabrication industry on a mass scale with our cutting-edge welding technology and WaaS business model, and this is the first step in achieving this,” said K-TIG CEO, David Williams.