This page contains IPO information based on the Prospectus dated 21 November 2019. Link for the Prospectus: https://nitrooffer.thereachagency.com/offer/home/
This Prospectus relates to an initial public offering of new Shares by the Company and the sale of existing Shares by SaleCo at an Offer Price of A$1.72 per Share. A total of 64.1 million Shares will be available under the Offer. These Shares will be available for investors under the Broker Firm Offer, the Institutional Offer and the Priority Offer. The Shares offered under this Prospectus will represent approximately 33.9% of the Shares on issue at completion of the Offer.
The Offer is expected to raise approximately $45.0 million from the issue of New Shares by the Company and for the Company’s benefit. The total number of Shares on issue at Completion will be 188.9 million and all Shares will, once issued, rank equally with each other.
*The Offer has been fully underwritten by the Underwriter.
The Offer comprises:
No general public offer of Shares will be made under the Offer. The allocation of Shares between the Broker Firm Offer, the Institutional Offer and the Priority Offer will be determined by agreement between Nitro and the Lead Manager.
Nitro was founded in 2005 in Melbourne, Australia, offering Nitro Pro as an alternative to Adobe Acrobat for desktop PDF productivity. Nitro Pro was initially sold online, but sales channels have since expanded to include Nitro’s growing sales team, as well as a global partner network of software resellers.
In 2016, Nitro began transitioning from a perpetual or “one-time” licensing model to a subscription licensing model, as well as commencing a focus on the enterprise market. In 2018, Nitro introduced the Nitro Productivity Suite, a document productivity solution enabling customers to receive PDF productivity tools, eSignature capabilities and usage and ROI analytics through an integrated desktop and cloud solution.
In recent years, organisations have placed an increasing focus on cost reduction and productivity improvements in workflows and tasks undertaken by their employees and workers. In many organisations, such tasks involve the creation, editing and handling of electronic documents by knowledge workers. The document productivity industry provides software that can be applied within enterprises, to improve document collaboration within the enterprise collaboration ecosystem through successful digital transformation. Enterprise collaboration technologies including document productivity technologies have become important enablers of digital business transition. In particular, they can:
（Overview Of The Enterprise Collaboration Landscape）
The lifecycle of a document, especially within businesses, is complicated as a result of the necessity for collaboration between multiple stakeholders, for disparate objectives and processes; and can often involve multiple solution providers and end users. A range of potential sources of this additional complexity are discussed below:
(Overview of The Lifecycle of A Document In A Collaborative Landscape)
Based on the findings of a market survey conducted by Forrester, Nitro is able to realistically serve a market with a revenue opportunity of approximately $5.5 billion. This market represents a portion of Nitro’s global serviceable available market which Forrester has estimated to be worth approximately $46 billion. Based on Forrester’s research, the revenue opportunity that is attributable to the portion of the serviceable available market which Nitro may be able to realistically serve is expected to grow at a rate of 10.6% per annum over the next four years.
(NITRO's serviceable available market for pdf productivity and eSigning)
Nitro’s software solution empowers organisations and knowledge workers through a suite of tools that improve document productivity by making it more efficient to create, convert, share, sign and collaborate on documents on any device that supports the software. The Nitro Productivity Suite comprises three core products: Nitro Pro, Nitro Cloud and Nitro Analytics. Customers can manage users and licenses through the Nitro Admin tool and the Company also offers on-boarding, adoption and change management capabilities through its Customer Success offering. Each of these products is described in more detail below.
Nitro Pro is a Windows-based desktop PDF productivity application enabling users to quickly and easily create, convert, edit, redact, sign, review and protect PDF documents. Users can create PDF documents, or convert PDF documents into Word, Excel or PowerPoint formats. Nitro Pro makes PDF files and scanned documents editable using Optical Character Recognition (“OCR”) technology and integrates with cloud-based storage products such as Dropbox, Google Drive and Microsoft OneDrive.
Nitro Pro enables users to collaborate digitally, fill and sign forms, protect and control document integrity and editability, and improve productivity and corporate sustainability by minimising printing, scanning and paper waste. The following figure provides an overview of the look and feel and key features of the Nitro Pro solution and demonstrates its familiar “ribbon” menu design.
（NITRO PRO FEATURES）
Nitro Cloud provides customers with both eSigning and PDF productivity capabilities to any device with a web browser, including mobile devices. It allows users to send and receive documents for signing, collaborate on documents online, and perform other PDF productivity tasks, all without the installation of any software. For example, when sending a digital document to request eSignatures from a particular party, the receiving party does not require a Nitro account.
Nitro Cloud is differentiated from competitors in several key respects, including advanced collaboration and analytics capabilities, an easy-to-use user interface, and a licensing model that provides for unlimited signatures. Most competing solutions charge on both a per-user and per-signature (or transaction) basis.
The collaboration capabilities within Nitro Cloud enable users to securely share documents online, invite others to comment, and track document workflows with real-time notifications. The solution also makes eSigning documents and form filling much faster and more efficient compared to manually entering data into forms. Nitro Cloud is integrated with Nitro Pro and Microsoft Word, enabling users to send documents for signature directly from within these applications. In addition, Nitro Cloud has support for features such as Single Sign-On (“SSO”) and Two-Factor Authentication (“2FA”) to enable enterprise user management and enhanced signing security, respectively.
Nitro aims to ensure data and documents stay secure with digital audit trails, SSL AES, and advanced security and data privacy compliance certifications, including GDPR, SOC 2 Type 2, HIPAA and Privacy Shield.
（NITRO CLOUD FEATURES）
Nitro Analytics provides customers with actionable insights on product usage and adoption, measures print reduction associated with digitising business processes, pinpoints areas for productivity improvement, and identifies tangible ROI from the Nitro Productivity Suite for customers. Nitro Analytics is used by customers to:
1) understand, improve and accelerate product adoption;
2) gain unique insights into document productivity and workflows;
3) optimise inefficient document processes;
4) visualise printing behaviours and trends;
5) drive targeted training activities; and
6) measure ROI.
（NITRO ANALYTICS FEATURES）
The Nitro Productivity Suite also includes Nitro Admin, which is a cloud-based solution designed to help facilitate enterprise license deployment and user management. Nitro Admin supports adoption and implementation through self-help knowledge-based tools, enables license and user management via identity-based access, offers improved visibility into license allocation and streamlines new user on-boarding processes by enabling setup and management by multiple methods, while simple invitation workflows enable greater productivity.
Nitro supports the adoption and implementation of its solutions through on-boarding, scaling and enablement best practices delivered through self-help knowledge-based tools, and via the Nitro Customer Success team, which is focused not just on adoption, but on proving ROI, business impact and ensuring customers achieve maximum value from their Nitro partnership. Support includes live and on-demand training and helpful resources to educate users. The team works with customers of all sizes, but notably has helped some of the largest companies in the world deploy Nitro to tens of thousands of individual users. Support also includes comprehensive reviews that measure progress against business goals such as user adoption and print elimination. For individual users that need assistance using Nitro’s solutions, the Company offers 24/7 web-based customer support. Nitro’s customer success program gives customers access to resources that assist with on-boarding and rollout.
Revenue generation and evolution of the licensing model
Historically, Nitro only offered its solution via a perpetual licensing model. In 2016, the Company began offering its Nitro Pro solution for enterprises and SMBs via a SaaS-based subscription licensing model. In addition to the sale of subscription licenses to new customers, the Company is also transitioning legacy enterprise and SMB customers from perpetual licenses to subscription-based licensing. SOHO customers and individuals are still able to purchase perpetual licenses via Nitro’s online store front.
（NITRO’S REVENUE MODEL）
（User Licenses Growth）
Key strengths of Nitro’s business model
Independent Chairman and Non-Executive Director
Executive Director and Chief Executive Officer
Executive Director and Senior Vice President, Tax and Treasury
Independent Non-Executive Director
Independent Non-Executive Director
Independent Non-Executive Director
Chief Financial Officer
Chief Operating Officer
Vice President, Engineering
ASX Codes, Offer Opening and Closing Dates are proposed only and are subject to change without notice.
The IPO information on the website provided by 61 Financial only serves general information purposes, it does not constitute financial product advice. All IPO information is retrieved from the Company’s Prospectus. They are subject to change at any time without notice. Investors shall refer to the Prospectus for detailed information.