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Kleos Space to debut on the ASX today following $11M capital raising

 

Luxembourg-headquartered satellite firm Kleos Space will this morning make its debut on the Australian Securities Exchange. It follows a successful $11 million capital raising that will allow it to launch its first satellite in mid-2019.

 

Kleos is targeting the $41 billion global intelligence, surveillance and reconnaissance market, with Australian government agencies on its prospective customer list. Co-founder and CEO Andy Bowyer said interest from investors, including in Australia, was indicative of the current demand for satellite-based ISR.

 

“The capital raising had significant interest from Australian based institutional groups. Our listing comes at a time when governments around the world are seeking new technology to protect their borders, and we believe Kleos will provide a solution,” said Bowyer.

 

Kleos was spun-off from UK-based parent company Magna Parva and has had backing from the Luxembourg Government, the UK Ministry of Defence, the European Space Agency and UK Space Agency. In March this year it signed a $3.5 million contract with GomSpace to deliver the first of a planned 20 satellite constellation.

 

The company also opened its first overseas sales and business development office in Canberra recently. The Australian subsidiary will be tasked with developing the broader Asia Pacific market and is being headed up by former ADF member Erik Tyler.

 

According to Bowyer, the company will have a non-US first mover advantage to work with governments and commercial information users in the ISR market. It will then aim to scale its customer base into wider non-maritime and non-defence markets such as environmental protection, search and rescue services and insurance services.

 “We are aiming for 20 satellite systems in low-earth orbit until we have continuous worldwide coverage. This improves the company’s service offering by providing surveillance across a number of markets, with near real-time information tailored to a customer’s needs,” Bowyer said.

 

Peter Round, chairman of Kleos Space and a former capabilities director at the European Defence Agency, said he hoped the Australian Government will become an early customer in the company’s regional expansion plans.

 

“With Australia’s large coastline borders under the constant threat of people smuggling and illegal fishing, our satellite technology offers an alternative to current land based solutions, which are expensive, technically limited by range, and subject to counter threats,” Round said.

 

Kleos was also buoyed by the federal government's new space activities legislation aimed at growing Australia’s satellite launch capability as well as the funding for the Australian Space Agency.

 

The federal government has also pledged to invest $500 million in improving Australia’s space-based ISR capabilities. “It is clear that Australia is seeking new technologies to support its defence operations, border protection and humanitarian missions, and we plan to leverage our Canberra-based office to align ourselves with these Australian Government initiatives,” the chairman said.

 

Kleos Space is scheduled to list at 11am today and will use the KSS ticker. Geoff Long, Commsday.

 


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