HealthEngine advances IPO plans

Perth technology company HealthEngine has made a key change in its corporate structure, signalling it is moving closer to proceeding with a stockmarket float.

HealthEngine has applied to the corporate regulator to change from a ‘Pty Ltd’ company to a public company.

This is a common precursor to companies launching an initial public offering.

HealthEngine has not officially confirmed its plans but it has previously been reported that it has appointed advisers for an IPO.

Its lead adviser is Sydney-based Ad Astra Corporate Advisory while broking firms RBC Capital Markets and Bell Potter have been named as joint lead managers.

Founded by managing director and 40under40 winner Marcus Tan more than a decade ago, HealthEngine is widely regarded as one of WA’s most successful tech companies.

Its core product and main revenue generator is an online booking service for medical appointments, with 7,000 providers across Australia on its network.

It has been looking to diversify, with COVID vaccine bookings through pharmacies seen as a new growth opportunity.

The company is understood to have reached an annual revenue run-rate of about $21 million, based on its latest June quarter performance, according to data presented to investors recently.

That follows rapid growth in revenue, from $5.6 million in 2016 to $16.6 million in 2018, according to annual returns lodged with ASIC.

Those returns also show the business incurred big losses, to the tune of $13.2 million for the year to June 2018.

It was forced to modify its commercial strategy after a major run-in with the competition regulator.

The company's growth has been supported by several big investors, including Telstra Ventures, Seven West Media, Sequoia Capital and Perth-based Larsen Ventures.

Its June 2018 accounts show it had contributed equity of $52 million.

Andrew Larsen is the company’s acting chairman.