3D printing service bureau 3D Metalforge has begun trading on the Australian Securities Exchange (ASX) following an oversubscribed IPO which raised the company A$10 million in capital.
The company issued a total of 50,000,000 fully paid ordinary shares at $0.20 each, listing 3D Metalforge with a market capitalization of around $38 million. With VC firm Alto Capital managing the IPO, contributions were made by a variety of institutional, high net worth and sophisticated investors.
The firm will use the funding to expand its revenue growth initiatives. This includes increasing the production capacity of its Singapore facility, opening a new factory in Houston, Texas, and upgrading its Perth office to capitalize on opportunities in the Australian energy and defense sectors.
Matthew Waterhouse, CEO of 3D Metalforge, states, “We are excited about becoming a listed company and welcome our new shareholders and thank them for the high level of interest and support. We now have a robust capital base to execute our expansion plans and are listing at a time when strong industry tailwinds are driving growth and innovation across the Additive Manufacturing sector.”
A part every eight minutes
According to 3D Metalforge, a part is 3D printed every eight minutes at the company’s Singapore manufacturing facility. With a fast-growing blue chip customer base in the energy, maritime, tooling, and defense sectors, the firm managed to generate A$1.3 million in revenue in the 2019 financial year.
Its production capabilities are facilitated by a set of proprietary processes, which make up the company’s Intelligent Additive Manufacturing platform. As well as 3D printing and post-processing services, the company offers design and engineering services, materials advice, and even part testing.
With a focus on SLM and DED-based metal 3D printing, 3D Metalforge customers tend to benefit from reductions in storage costs and delivery times due to localized manufacturing. Some of the company’s projects have yielded up to 20% – 30% in material waste reductions when compared to conventional manufacturing techniques, with lead times down an average of 15%.
What are the next steps for 3D Metalforge?
The company is ultimately working towards expanding its global network of individual manufacturing facilities, in a bid to increase throughputs and reduce costs for its customers. With an improved production capacity at the Singapore facility and a new hub in Houston, the firm hopes to further localize its services, reducing transport distances while gaining exposure to US-based industrial clients.
With the Perth office expansion, the firm’s corporate presence in Australia is also a major priority. Early talks are already underway between 3D Metalforge and its existing base of global clients, as many of them have offices and facilities in Australia. Having recently appointed mining and energy executive Samantha Tough as company director, 3D Metalforge is doubling down on its current engagement with the energy and industrial sectors. As an aside, Tough is also the Chairman of Horizon Power, a Western Australia State Government-owned energy company.
Going down the SPAC route, aerospace company Rocket Lab recently agreed to merge with blank check company Vector Acquisition Corporation to go public with its 3D printed rocket business. Due to be completed in Q2 2021, the move will see the combined company valued at $4.1 billion, while generating $750 million in cash for Rocket Lab.
Elsewhere, 3D printer manufacturer Markforged also recently agreed to go public by merging with a blank check company called one. Once complete in summer of 2021, the deal will value the combined company at $2.1 billion, netting $425 million in cash for Markforged.
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Featured image shows SLM 3D printing at a 3D Metalforge facility. Photo via 3D Metalforge.
