Software company Zutec has become the first Irish firm ever to list on the Swedish Nasdaq First North stock exchange. The company completed a new share issue of SEK50 million (€5 million) prior to listing at a share price of SEK24, valuing the company at €17 million.
The Enterprise Ireland-supported firm develops cloud-based software solutions for companies in the construction industry. Zutec counts some of the world’s largest construction companies among its customers and its products have been used in more than 300 projects on three continents, including iconic buildings such as Wembley Stadium and The Shard in London, Cleveland Clinic and Zayed University in the United Arab Emirates, as well as the new port and airport in Doha, Qatar.
“We chose a listing on Nasdaq First North because it is a market for fast-growing technology companies with a collection of technically savvy private and institutional investors focusing on companies such as such as ours,” says Zutec chief executive Brendan O’Riordan. “We are now ready to shift our focus from being a development-driven company to focus more on sales and market expansion. The injection of growth and working capital thus helps us achieve the goal of becoming a leader in our field of business.”
According to John Roche, Nordenchef at Enterprise Ireland Sweden, Irish firms have a strong and growing presence in Sweden, especially in the construction, engineering and electronics industries. “Sweden is not only a strong export market for Irish companies, but is also a proven source of capital,” he says. “Zutec’s listing on Nasdaq First North paves the way for more Irish technology companies to consider this option.”
A special ceremony attended by Dympna Hayes, Ireland’s ambassador to Sweden and Minister for Culture Josepha Madigan was held at Nasdaq First North to mark the IPO. “The listing is a very important milestone for Zutec, as it finances the next step in the company’s growth. Irish companies have built a strong reputation internationally for innovation, flexibility and reliable competitive advantages,” Madigan said.
Founded in 1999, the company originally provided pdf versions of operations and maintenance manuals for buildings. “Up to that point, when a contractor handed over a building to a client, they would have had wheelbarrows full of manuals,” O’Riordan explains.” In 2004, we moved to a web-based service and later moved into other areas like workflow documentation.”
High-value tools
The company still provides operation and maintenance and asset-management software for buildings but has added a suite of programme management and other high-value tools over time.
“When you build something complicated like a hospital or an airport terminal building, you have to know how to run it,” says O’Riordan. “Using our software, all the data is collected as the building is designed and constructed. When the building is handed over, all the data is there ready for the owner. We have a viewer which gives a 3D representation of the building. You can click on a feature or an element like a window and it will tell you who supplied it, the u value of the glass, and the other specifications. You can also get live information from the building as well.”
The company works with leading architects, engineers and contractors in Ireland, the UK, mainland Europe, the Middle East and Australia and is expanding into other markets around the world. “We are working with leading UK contractor Multiplex on 18 projects including the Royal Hospital for Sick Children and Southern General in Glasgow; in the Middle East we are working on the €15 billion Doha Port project; and we are also working on Abu Dhabi Airport and a number of big hospitals and universities in the region.”
Enterprise Ireland is a stakeholder in the company, having invested in 2004. “Enterprise Ireland support has been very important to us over the years. They have also helped greatly with our international marketing. Their overseas office network is second to none. Davy Stockbrokers have also been very supportive.”
High-value projects will continue to form an important element of Zutec’s business but a key market for the future will be licensing the software to design professionals and contractors and others. “We have a couple of new high-volume simple plug-and-play products in the pipeline and we are quite excited about these.”