I recently decided that I want to do more detailed write ups of companies I'm interested in - really, in order to keep me "honest" and prevent me from skipping on the details and making investments without doing as much research as I really should! This is the first of those - the layout inspired by Jack's fantastic write ups on this site. Obviously all of this is just my own opinion, do your own research, etc. I certainly don't pretend to be an expert in this game, and am more than happy to hear feedback. For ease, much of the below has been lifted directly from the company's admission document or analyst research notes.

Profile

Fonix Mobile PLC ( Fonix Mobile (LON:FNX) ) is a small cap company recently listed on AIM in the Telecoms sector. It’s first day of dealings was 12 Oct 2020.

It is a UK based company that provides mobile payments and messaging services for clients across media, telecoms, entertainment, enterprise and commerce. The Company offers an application programming interface (API) for charging users directly to their phone bills through desktop, mobile and applications.

These solutions have enabled Fonix to leverage its proprietary, cloud-based platform to grow with blue chip clients including Bauer Media, the BBC, BT and ITV, across a range of sectors including media, charity, gaming, telecoms, and other digital services.

Listing

There are 100,000,000 shares in issue, and the market cap is £136m.

When it was listed in October 2020, 50,000,000 shares were issued at a price of 90p (current price 135.6p). This raised £45m for selling shareholders - i.e. no fresh money raised for the company itself. I don’t generally like to see that – it’s essentially a half exit / cash out for the directors, but everyone needs their payday I guess, and they do still have a good stake in the business.

Reasons given for listing were as follows:

- Raise Fonix’s trade profile;

- Enable Fonix to be better positioned to attract, recruit and retain key employees who may be further incentivised through share option schemes;

- Provide Fonix with more flexibility to fund growth;

- Enabling existing shareholders to participate in the future growth of the Company;

- Enable Fonix to issue new Ordinary Shares for relevant M&A opportunities; and

All fair enough though I…

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