Human resources software firm ELMO has made a strong market debut, with its shares soaring 25 per cent on their first day of trading.
ELMO offers cloud-based software solutions to automate HR processes, and plans to use the $25 million raised in its initial public offer earlier in June to boost its market share.
Its quoted shares rose from a $2.00 issue price to close Thursday at $2.50, lifting the company's market capitalisation to $135.4 million.
"Our subscription-based software solves an important HR administration and talent management issue for our customers," chief executive Danny Lessem said on Thursday.
"Now that our IPO is complete, we are excited to put our heads down and focus on executing our growth strategy."
The business operates on a subscription-based revenue model with 93 per cent recurring revenue and long-term contracts.
The Australia-based tech firm reported annual growth of more than 40 per cent in its software-as-a-service revenue over the past three years.
It has forecast a $1.45 million net loss for the 2016/17 financial year on revenue of $16.06 million.
The company plans to boost spending on sales and marketing and new product development, and is also looking for potential bolt-on acquisitions of HR software companies and complementary technology.
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