Argus lists at premium, at 23 cents

Argus lists at premium, at 23 cents

October 5, 2004 - 11:29AM

Iris recognition technology company Argus Solutions Ltd listed on the Australian Stock Exchange at 23 cents per share, a three cents premium to its initial public offer (IPO) price.

After debuting at 1100 AEST, by 1110 AEST, the stock had traded higher to 23.5 cents, up 3.5 cents or 17.5 per cent on the issue price on turnover of 2.04 million shares.

The IPO raised $15 million through the sale of 75 million shares at 20 cents each.

At the issue price, Argus' market value was $34.94 million for a total of 174.72 million shares, according to the company's prospectus.

The company plans to use the money from the listing to access markets such as Asia, the Middle East and the US where there is increasing demand for its product.

Argus' business is based on the development of software and hardware applications using iris recognition, a form of biometric scanning of the eye that identifies people by the unique characteristics of the iris.

Argus was established in 1999 after signing a re-seller agreement with Iridian Technologies Inc of the US to introduce iris recognition to the Australian market.

Iridian was the first company in the world to develop and patent iris recognition algorithms and software.

In turn, Argus has developed and filed patents for iris recognition related solutions, including an internet hosted identification service called AKITA.

Argus said the global market for biometric identification solutions is estimated at $US1.4 billion in 2004 and has been expanding at around 25 per cent a year in the past five years.

Key drivers of demand are heightened security concerns since the September 11, 2001, terrorist attacks in the US, proliferation of electronic fraud and growing demand for better ways to identify people.

The company is developing facial recognition technology solutions to complement its iris business.