£32 million IPO of CentralNic Group Plc
2nd September 2013
Zeus Capital, the corporate finance advisory firm with offices in London, Manchester and Birmingham has advised CentralNic Group plc (Ticker CNIC) on its AIM IPO and £7million institutional fundraise. On admission CentralNic had a market capitalisation of £32.5 million. Zeus Capital acted as Nominated Adviser and sole Broker.
Overview of CentralNic
- CentralNic is a registry service provider which supports top-level domains (“TLDs” such as .la and .bar) and second-level domains (“SLDs” such as .uk.com and .us.com), distributing and powering domain names that end with those TLDs and SLDs, such as www.artweek.la and www.avon.uk.com
- CentralNic uses its in-house developed IT platform to provide the domain name system (“DNS”) infrastructure and distribute its own portfolio of domain names and for third party owners of TLDs and SLDs (also known as “registry operators”)
- CentralNic distributes to a global network of “registrars” (retailers such as GoDaddy and Network Solutions), which sell these to end users
- CentralNic owns a portfolio of premium domain names including .uk.comand .us.com, which enables it to market subdomains such as avon.uk.com and activia.us.com to customers through its distribution network
- CentralNic currently has contracts to provide distribution services for seven other domains including two country codes, .LA and .PW
- CentralNic has also been awarded the exclusive distribution contracts for 60 new TLDs, 25 of which are already confirmed to launch through CentralNic, including:
- .wiki, the TLD for one of the world’s best known website types;
- .college, for education institutions globally;
- .rest, the global TLD for restaurants;
- .contact, the TLD for contact forms and applications;
- .reit, for real estate investment trusts;
- .xyz, the most generic TLD, suitable for any use; and
- .bar, the TLD for bars
Following recent industry developments and regulatory changes, CentralNic expects, by virtue of its contracts and existing technical and distribution infrastructure, to benefit from a major expansion in the number of generic top level domains (“gTLDs”) such as .wiki and .college, which are expected to start operating from the end of 2013.
The Directors believe that the funds raised for the Group by the placing of shares will allow the Group to enhance its global distribution network, acquire interests in new gTLDs, expand its own retail business and obtain contracts from governments to operate their country code TLDs, especially in developing markets.
John Goold, Joint Chief Executive of Zeus Capital commented;
“We are delighted to have advised CentralNic on its AIM IPO and fundraising. We believe the Company has an exciting future which the listing on AIM will help to accelerate. The transaction has swiftly followed the admission to AIM of Conviviality Retail and further demonstrates the breadth of services that we offer and the range of companies that Zeus Capital works with.”