Artivision Technologies falls below $0.20 IPO price, as investors wary of Singapore-based video content technology developer's limited track record (set up in '04), history of tight cashflow. According to IPO prospectus, Artivision faced negative cashflow for last 3 FY ended Mar due to huge investments in R&D, marketing to promote products. Firm also warns it may remain in red as it expects expenses to increase in near term. Will use $13.2m net proceeds to develop new features, expand presence in Asia, US, Russia.
SIAS Research analyst Jessy Xia says while company well positioned to take off "in an industry where technology advancement is urgently needed and well rewarded", investing in high-tech firm not without risks. Notes slow take-up rate for Artivision's technology, operating expenses outpacing revenue growth. IPO of 75 m new shares 1.05X subscribed.
Artivision develops video content technology used for security, traffic management.
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