Tag: Indoor Skydiving

Excitement is building towards the grand opening of the facility next month with all involved gathered to witness the first human flight.

IFLY Downunders’ parent company, Indoor Skydive Australia Group Limited is headed up by Ex SAS Soldiers Wayne Jones and Daniel Hogan.

Chief operating officer Daniel Hogan said it all started with a one-liner back in 2007.

“It was during the 50th anniversary of the SAS regiment – that’s where we both served, and from about 2009 that’s when we really solidified the idea and came up with the plan,” Mr Hogan said.

Chief executive officer Wayne Jones said they have used similar facilities for military training overseas and they wanted to bring the same opportunity to Australia.

“Penrith is the adventure capital of NSW, of western Sydney, it’s a growing area and there’s huge opportunities here,” Mr Jones said.

“There are so many activities to do between the Blue Mountains, the Regatta Centre, Wet ‘n’ Wild and the Wake Park just behind us.

The experience is already proving to be a huge success with over 500 hours of tunnel time sold in the last few months.

“The response has been overwhelming. We can’t wait to fly the whole of Australia because that’s who can use the facility: anyone from three years old to 103 years old, boys and girls, birthday parties and corporate events,” Mr Hogan said.

“The overall one-hour experience includes training, fit out of equipment, and then you fly twice – each flight is just under a minute which is the equivalent of a flight from 14000ft,” Mr Jones added.

After the first flight both men were clearly relieved and excited for others to experience the feeling of flight.

“It was beyond expectations, that was absolutely fantastic. You hear the statement ‘a dream come true’ and you never really look at it like that, but when you get to feel it, well now I know the comment,” Mr Hogan said.

Watch the video here.

Indoor Skydive Australia Group Limited (ASX:IDZ) says it is on track to deliver Australia’s first indoor skydiving facility at Penrith in New South Wales.

The skydiving and adventure sports-focussed company advises the commissioning process of the vertical wind tunnel has now started.

Following commissioning the company will begin fitting out surrounding areas of the tunnel such as training, spectator and customer service areas.

As Indoor Skydive Australia Group continues to build its training crew the company has flagged for operations start by the end of the month.

The Sydney-based company listed on the ASX in 2011 and has plans to construct similar facilities in Melbourne and Queensland’s Gold Coast.

Indoor Skydive Australia Group reported a net loss of $1.2 million in the first half of its 2014 financial year.

View the original article and video below:

Written by Max Mason

Skydivers can tackle an indoor challenge in Sydney’s west – 400 flight hours were sold in four hours in an early bird sale.

David Murray may be excited about joining the board of little-known Indoor Skydive Australia but there is one ­challenge already waiting for the former chief executive of the Commonwealth Bank to tackle head on.

Mr Murray, who was inaugural head of the federal government’s Future Fund, has never taken the plunge and gone skydiving.

“I don’t think I’m going to duck it with these blokes, am I?” he joked.

Due for completion in the first quarter of this year, the indoor facility being built in Sydney’s west is attracting huge interest; 400 flight hours were sold in four hours in an early bird sale, and Mr Murray, who joined the board of ISA as a non-executive director last ­Monday, will be joining the line of ­people looking to fly.

“We’ll certainly get David up in the indoor skydiving centre; I don’t know whether or not we’ll get him out of an aeroplane,” ISA chairman Ken Gillespie said. Indoor skydiving works through a wind tunnel, created by electric ­turbines with airflow sucked out of a central chamber, which houses the ­skydiver.

It seems an odd marriage between one of Australia’s best-known businessmen and ISA, which has a market capitalisation of just $53.2 million, but the connection is much closer to home than most board member additions.

Mr Murray and Mr Gillespie, who formerly served as Vice Chief of the Defence Force and Chief of Army, have shared a friendship for several years.

“I know the Murray family particularly well, having served in the military with two of David’s brothers over time,” Mr Gillespie said.

Prior to the company’s listing, ISA had trouble drawing interest from banks to help with the initial public offering.

“We basically did the IPO ourselves; we had difficulty attracting people to come on,” Mr Gillespie said.

“I knew David and his background, I went to him and in the first place to say ‘we wouldn’t mind some advice on how we would shore up some investors and make sure the organisation could get through the IPO and go ahead’.”

Initially going along to help ISA, Mr Murray listened to the company’s presentations which piqued his interest.

“I thought what they were doing was unique and they’re a can-do style of operators, which I like. Supporting a start-up is something I like doing, it’s got all the commercial challenges that I like,” Mr Murray said.

The company listed in January 2013, raising $12 million with its IPO at 20¢ a share.

The stock peaked at more than 75¢ in September, and was up 200 per cent in 2013. Shares are trading at 60¢. In December, Mr Murray made a personal investment in the company, purchasing 2.2 million shares at 45¢ each.

“Around that time as well, we were obviously very keen to try and get David on the board,” ISA chief executive Wayne Jones said. “He was very busy late last year with a whole bunch of other things going on.”

It wasn’t long before Mr Murray, who was appointed to head the federal government inquiry into Australia’s financial system, joined the ISA board.

“We’ve got a growth strategy where we will be building another four facilities, around Australia,” Mr Jones said. “We have just signed a joint-territory development agreement [with] SkyVenture, our supplier, and that guarantees us supply and gives us exclusivity of Australia and New Zealand.”

ISA is yet to generate any trading revenue because it is still in the construction phase of development, but if its global take-up of indoor skydiving is any indication, its growth outlook looks strong, Veritas Securities analyst Brent Mitchell said.

“History has shown that these have been very successful. Two recent installations in Texas, Dallas, and Austin, have had a very high utilisation rate and have demonstrated very high margins in the initial years.”

The company’s strong connection to the armed forces should also give it the opportunity to sign training contracts.

Mr Jones, who spent 21 years in the military and 15 years in the Special Air Services Regiment, training free-fall within the unit, said ISA has been in discussions with the Australian Defence Force to use the company’s facility once completed.

Written by Max Mason

David Murray AO, the former chief executive of the Commonwealth Bank of Australia and inaugural chairman of the Australian government Future Fund, has joined little-known Indoor Skydive Australia as a non-executive director.

Mr Murray, who has a beneficial interest in 2.2 million ISA Group shares, said he is looking forward to working with the company over the next few years.

Last year, Mr Murray was appointed to head the federal government’s inquiry into Australia’s financial system.

‘‘I believe being involved in the development of a copany from its foundation stages is personally rewarding and important for the Australian economy,’’ Mr Murray said.

Indoor Skydive Australia Group raised $12 million in a January 2013 listing at 20¢ a share.

The stock surged peaked at more than 75¢ in September, and was up 200 per cent in 2013.

On Monday shares fell 3.3 per cent to 59¢.

The group’s managing director, Wayne Jones, a former member of the Australian military’s Special Air Services Regiment, has an exclusive licensing agreement with United States company SkyVenture to use their technology to build indoor tunnels for simulated skydiving.

ISA is building an indoor skydiving centre in Sydney’s west which is expected to be completed in the first quarter of 2014.

During the day, the centre is to be used for recreation and corporate outings.

However, it is understood that part of ISA’s strategy involves securing military contracts to train armed services personnel.

“Internationally, once built, these centres generate very positive cash flow,” said Greencape Capital portfolio manager Matthew Ryland, who has invested in Indoor Skydive.

ISA chairman Ken Gillespie said in a statement to the Australian Securities Exchange that the company was delighted to have Mr Murray on board.

‘‘His considerable financial expertise and passion for assisting high growth developing companies will prove invaluable to the company,’’ Mr Gillespie said.

Read the original article. 

Thrill seekers with a yearning to fly will soon get the chance at a new vertical wind tunnel in western Sydney.

Publicly listed company Indoor Skydive Australia has already put 157 tonnes of concrete in place as it constructs its first Australian facility at Penrith.

The Sydney-based outfit, which listed on the Australian Securities Exchange in 2011, plans to build similar facilities in Melbourne and Queensland’s Gold Coast over the next three to five years.

Vertical wind tunnels give tourists, skydiving enthusiasts and military personnel the sensation of flight, propelling them within a flight chamber using powerful fans.

They were first built for recreational use in the 1970s.

Indoor Skydive Australia says it has already installed a glass flight chamber five metres in diameter, making it one of the largest in the world.

“This flight chamber provides an uninterrupted view for flyers and spectators,” the company said.

The company says all of the initial infrastructure for the project is now in place.

Chief operating officer Danny Hogan said the breadth and height of the wind tunnel could now be appreciated as the facility takes shape.

“Completing the big lifts was a major construction milestone and, together with the work completed over the new year period, positions us well during this critical construction stage,” Mr Hogan said.

During the next stage, the company will focus on mechanical and electrical infrastructure.

Completion of works at Penrith is expected to occur during the first quarter of 2014.

Indoor Skydive Australia added that it is now searching for a location for a vertical wind tunnel in Melbourne.

Western Sydney and the Gold Coast are already home to large fun parks and leisure attractions.

Over the past 12 months, shares in the company have more than tripled.

At 1230 AEDT Indoor Skydive Australia were flat at 60 cents.

Original article is available here.

 

Value of funds raised set to jump from $1.3b to $7.8b

19 December 2013:  After five years in the doldrums, the initial public offering (IPO) market has bounced back in the second half of 2013, with the value of funds raised in the calendar year to soar from $1.3 billion to $7.8 billion.

The latest Deloitte Corporate Finance IPO review finds that, by the end of calendar year 2013, an expected 61 IPOs will be finalised, up from 48 in 2012.

This will make 2013 the biggest year for float activity since the GFC (2007) in terms of funds raised, when 260 IPOs delivered a combined capital raising of more than $10 billion.

Deloitte Corporate Finance Partner and IPO specialist Ian Turner said: “The year has been one of two halves, with the steady growth in the ASX, growing confidence and strong demand from institutional investors, combined with the success of some of the earlier floats such as Virtus, paving the way for a rush of new listings in the second half.

“Approximately 90 per cent of total funds raised in the year are expected to be raised in the second half of 2013, with December alone expected to produce 23 IPOs with a combined capital raising of $4.6 billion.”

Annual funds raised by IPO 2000-2013

A growing trend in 2013 has been the supply of floats from private equity, with about 25 per cent or $2.1 billion of total funds raised being from private equity exits.

Largest IPOs by private equity funds

Deloitte Corporate Finance Partner Steve Woosnam said: “Contrary to at times negative sentiment around pricing of private equity exits, the year-to-date price performance from private equity-owned companies has shown some very positive returns, most notably, Virtus Health, Veda Group and Ozforex who have all achieved 30-plus per cent price gains.”

“While some recent floats are currently in negative territory, we still expect the IPO window to remain open into the New Year, fuelled by a backlog of companies whose listing options in previous years have been limited and given strong and ongoing institutional and retail investor demand.

“The hot sectors in 2013 were financial services, property and healthcare, and they will continue to provide plenty of floats in 2014. We also expect to see plenty of continued supply from private equity.”

The percentage of IPOs trading at or above their issue price was steady with the previous year at 53 per cent, but much improved from a low of 29 per cent in 2011. In addition, the total weighted average price gain of all floats was an encouraging five per cent.

Summary of IPO share price performances

*53 of expected 61 IPOs listed at preliminary review date of 17 December 2013

Indoor Skydive Australia was the best performing IPO of the year, with the Sydney-based company’s 20 cent shares improving by 175% to 55 cents at the review date of 17 December 2013.

The next-best performers were Freelancer (up 156 per cent), Brisbane-based phosphate explorer Fertoz (up 130%) and legal firm Shine Corporate (up 78 per cent).

Mr Turner said the ten largest and the ten best performing IPOs of the year spanned a wide range of industry sectors, reflecting the broad-based nature of the rebound in the IPO market.

“In particular, significant interest has been generated in real estate, financial sevices and healthcare, however the withdrawel of some  potential IPO candidates this year also highlights that there is not universal support across all sectors,” he said.

Top 10 IPOs by share price performance

The largest IPO for the year was New Zealand-based Meridian Energy, which listed on the NZX and the ASX after an initial public offer to investors on both sides of the Tasman totalling A$1,129 million. The total amount raised will increase to A$1,694 million when a second instalment falls due in February 2015.

Four of the five largest IPOs of the year are scheduled to occur in December with Cover-More Group ($521.0 million) expected to list this week, following the recent listing of  Pact Group ($648.8 million), GDI Property Group ($567.7 million) and Nine Entertainment Co. ($643.3 million) which listed earlier this month.

Top 10 IPOs by size

Mr Woosnam said the industry profile of IPO activity had changed markedly in 2013.

“Resource IPOs out of Perth have dominated the market in terms of number of floats since the GFC,” he said.

“This trend continued into 2012, when almost 80 per cent of all floats were in the mining or energy sectors.

“In 2013, resource floats dropped to only one-third of all IPO activity, and we have seen the re-emergence of industries such as real estate, financial services, healthcare and consumer services.”

IPOs by industry sector

Analysis of float activity by business type (rather than GICS industry classification) highlights the importance of the financial services, real estate and healthcare sectors in the rebound in the IPO market in 2013.

Financial services IPOs > $10m

Financial services related IPOs accounted for $2 billion, or 25 per cent, of all funds raised. The sector produced a number of strong share price performances, resulting in a weighted average price gain of 27 per cent as of the review date.

Real estate IPOs > $10m

 

Real estate IPOs were also a large source of float activity, accounting for $1.6 billion or 20 per cent of all funds raised, although average price performance was in negative territory at a weighted average share price loss of seven per cent as of the review date, with one more IPO in the sector to follow in the last week before Christmas.

Healthcare/Pharmaceutical IPOs

 

Healthcare-related IPOs were also an emerging trend in the 2013 market, with a total of $462 million raised by five floats. The weighted average share price gain was 38 per cent, thanks largely to the 50 per cent gain by Virtus Health, one of the 10 largest IPOs of the year.

IPO activity by state

NSW was the most active state for IPOs in terms of float numbers and value of capital raised. The state produced almost half of all IPOs for the year (29 out of 61), and accounted for more than half of the total amount raised. Significant IPOs that have listed to date from NSW include Nine Entertainment Co. ($643m), GDI Property Group ($568m), Cover-More Group ($521m), Virtus Health ($347m), Veda Group ($341m), Ozforex Group ($439m) and Dick Smith Holdings ($345m).

Victoria ranked second among the states, due to large IPOs such as Pact Group ($648.8 million), Hotel Property Investments ($279 million) and Vocation ($253 million).

Read the original Deloitte media release here

Written by Tony Featherstone 

The trickle of larger IPOs has turned into a flood. Barely a day passes without another float being launched and larger offers that had been shelved being repackaged for sale. Although each float should be assessed on its merits, the sheer volume of IPOs is cause for alarm.

I prefer investing in floats at the start of the IPO cycle, when better-quality companies are offered at fairer valuations, rather than in bull market conditions when advisers will float anything to earn a fee. But this latest IPO cycle has become incredibly compressed as sellers rush for the exits.

That does not mean investors should avoid all floats. There have been several terrific performers this year: Virtus Health, Steadfast Group, Shine Corporate and OzForex Group and a handful of other floats are well up on their issue price in a rising sharemarket over 2013.

Nevertheless, the float mania gripping Australian and global sharemarkets means investors need to be extra-careful when investing in IPOs. Jeremy Grantham, the legendary investor and chief investment strategist at US-based asset consultant GMO, this week cautioned investors about the IPO boom.

In his firm’s quarterly letter to investors, Grantham wrote: “We have also had a sharp and unexpected uptick in parts of the IPO market in the US, so I would think we are probably in the slow build-up to something interesting – a badly overpriced market and bubble conditions.”

Grantham added: “My personal guess is that the US market, especially the non-blue chips, will work its way higher, perhaps by 20 per cent to 30 per cent in the next year or, more likely, two years, with the rest of the world, including emerging-market equities, covering even more ground in at least a partial catch-up. And then we will have the third in the series of serious market busts since 1999.”

If Grantham is right, Australian investors could be buying IPOs this year and next near peak valuations, and taking a gamble. Again, some IPOs will be well worth that risk, but many more could be overpriced dogs cashing in on the latest bout of float hype.

One worthwhile strategy is focusing on recently listed micro-cap stocks that have a low market profile. It always amazes me how the market so quickly gives up on small IPOs if they have a poor debut or trade below their issue price within months of listing – even though some are much better value.

Or how the market sometimes takes so long to pick up on better-performing recently listed companies. Indoor Skydive Australia Group and Osprey Medical – two micro-caps I covered for The Bull earlier this year, are good examples. Both have rallied since listing, but still have a low investment profile.

Indoor Skydive sought $12 million last year through an IPO to build Australia’s first simulated skydiving attraction at Penrith, western Sydney. Its 20-cent issued shares have rallied to 59 cents, (they were 35 cents when The Bull wrote about Indoor Skydive in February).

I wrote at the time: “Indoor Skydive is obviously speculative. But unlike many micro-caps, it at least has a product that has had strong success overseas, has a well-regarded board, and is potentially within 12 to 18 months of first revenue.”

The response to an early-bird sale for its attraction, expected to open next year, shows the potential. Five hundred hours of wind-tunnel usage, worth $400,000, was sold out within four days. Anybody who has followed the strong success of iFly Singapore understands the popularity of indoor skydiving attractions – and why Indoor Skydive could build strong early cashflow.  Indoor extreme park venues are booming overseas.

Indoor Skydive has so far done a good job managing project construction and expects the facility to open late in the first quarter of 2014 – in line with market expectations. But it notes the facility is entering a “critical” and “challenging” phase as tunnel components are assembled and installed.

Indoor Skydive plans to minimise construction risks, and confirmation in the coming months that the facility will open in time for the Easter school holidays could lift the stock. Indoor Skydive’s $49-million valuation has potential to lift next year, provided it manages construction risk and early demand meets the huge expectations for this type of product. The early signs are good, but Indoor Skydive clearly suits experienced investors comfortable with higher-risk, less liquid, micro-caps.

The other IPO mentioned in February, Osprey Medical, has rallied from 40 cents to 73 cents since its May 2012 listing (they were 60 cents when this column last wrote about the stock). Osprey’s flagship device treats contrast-induced nephropathy (CIN), a form of kidney injury caused by X-ray-visible dye that cardiologists inject during heart procedures such as angioplasty and stenting. The company’s Cincor System captures a large amount of dye before it circulates to the kidneys.

Interest is rapidly building in the local life-sciences sector, in part because the US Nasdaq Biotechnology Index has soared more than 60 per cent this year to a record high, and 41 biotech floats have been unleashed in the US alone in 2013, collectively raising just under US$3 billion.

Osprey is among the more promising small-cap technology companies, but like all emerging life-science stocks, should be considered speculative.

Tony Featherstone is a former managing editor of BRW and Shares magazines. View the original article here.

Written by Edmund Tadros and Sally Rose

Feted job outsourcing site Freelancer and a little-known company building an indoor skydiving centre in Sydney’s west have provided the most breathtaking returns of this year’s floats.

Freelancer shares are up 268 per cent since listing on Friday, while shares in Indoor Skydive Australia Group have almost tripled since listing in January. They are the top two ­performers of the more than 30 companies floated on the stock exchange to date this year.

Other top performers include phosphate firm Fertoz, up 150 per cent, and law firm Shine Corporate, up 71.8 per cent. Virtus Health is up 56.7 per cent since listing in June.

Analysis by The Australian Financial Review shows shares in 13 of the 32 floats in 2013 are trading above their debut price, 17 are trading under water, while two have not moved.

The worst performers are dominated by junior resource companies. Uranium explorer ZEUS Resources has lost 89 per cent since listing. Hunter Valley coal seam gas developer Malabar Coal is down 77 per cent, and West Australian base metal and gold explorer Classic Minerals is down 72.5 per cent.

Of the five floats raising more than $100 million, online insurance ­comparison website iSelect has performed the worst, with its shares down 35.1 per cent.

The overall mixed performance comes before a December that will feature more than a dozen confirmed floats, including a $341.1 million raising from credit agency Veda Group and the biggest float of the year, a $700 million raising by television network Nine Entertainment Co.

The next biggest float of the year was Ozforex Group, which raised $439 million when it listed in October.

One investor is sceptical about the speed with which Nine Entertainment is returning to the market. “It is hard to believe that Channel Nine is a much better business than it was a year ago, but because the stock market is up, it could float for more than it should,” Platypus Asset Management chief investment officer Donald Williams said.

Generally speaking, Mr Williams said floats of businesses which have been run profitably in private hands for many years and government privatisations are more attractive than private equity exits when most of the cost savings and efficiency gains have already been made. He said it was encouraging when private equity owners planned to retain an interest in businesses they were listing, even if this did not eventuate due to an offer being oversubscribed.

“Quadrant Private Equity planned to keep a stake in fertility clinic network Virtus Health but demand for the stock at issue was overwhelming so they sold out completely,” he said.

Nine Entertainment Co’s two major shareholders, Oaktree Capital and Apollo Global Management, will retain significant holdings in the media company after it is listed.

Overall, Mr Williams said that while the quality of the IPO pipeline is mixed, “it appears there is more good than bad coming to market”.

“Valuations on a price-earnings ratios seem more solid than they have for the past four years,” he said.

THRILLS, NOT SPILLS, FOR INDOOR SKYDIVING INVESTORS

Indoor Skydive Australia Group raised $12 million in a January listing at 20¢ a share. The group’s managing director, Wayne Jones, a former member of the Australian military’s Special Air Services regiment, has an exclusive licensing agreement with United States company SkyVenture to use their technology to build indoor tunnels for simulated skydiving. The stock peaked at more than 75¢ in September before steadying around 55¢.

“Internationally, once built, these centres generate very positive cash flow,” said Greencape Capital portfolio manager Matthew Ryland, who has invested in Indoor Skydive.

“I went to facilities in Texas and Singapore to speak to management and try an indoor skydive,” Mr Ryland said. “Australia is a big market for recreational skydivers so we expect the centre at Penrith to be popular and see the opportunity to add at least another two or three locations around Australia.”

The main market will be providing a more affordable practice venue to recreational skydivers. Other markets include family and corporate outings.

Mr Ryland is hopeful Indoor Skydive Australia will secure a contract with the Australian military to use the facilities outside of regular business hours as a training venue.

View the published article:

Veritas Securities have put together a comprehensive report on ISA Group,  highlighting the completed capital raising, construction at Penrith, expansion of management team and JTDA with SkyVenture.

Read the full report here.