Zutec raises $5m via Nordic IPO

Shares in the Dublin-based mobile commissioning and handover technology specialist Zutec are now being traded on the Nasdaq First North stock exchange.

Zutec logoIreland-based cloud construction technology provider Zutec has successfully launched its shares on Sweden’s Nasdaq First North stock exchange, raising SEK42.1m (c £3.68m, €4.17m or US$5.14m). Dealings in Zutec Holding AB started yesterday (15 March 2018) – coincidentally the same date that Aconex’s shares ceased trading on the ASX.

A division of Nasdaq Nordic, the Stockholm-based Nasdaq First North is an alternative stock exchange for smaller companies in Europe. It is designed for small and growing companies, with certified advisers to help companies comply with all requirements and rules. Many companies now listed on the Nasdaq regulated main market started on First North.

Zutec background

As previously described (Zutec: desktop, mobile and even the “internet of things”, December 2015), Zutec was founded in 1999 and initially specialised in compiling O&M manuals on disk. It then switched to software development to enable its customers to undertake the same task, and grew steadily, driven by organic growth and not reliant on VC investment, during the early 2000s. It weathered the global financial crisis in the late 2000s, and as the UK construction market emerged from the recession, grew its UK presence, building on its long relationships with Brookfield Multiplex and other customers.


Zutec’s directors decided an initial public offering (IPO) would help the business shift from being a 31-strong development-driven company to focus on selling and market expansion. While profitable, it could not achieve its expansion ambitions from internally generated funds. The board also felt that an injection of growth and working capital would allow Zutec to become a global market leader within its  segment, enhancing the company’s international profile and providing legitimacy in the eyes of potential clients.

(Update [21 March 2018] – Zutec CEO Brendan O’Riordan gives more background to the rationale behind the IPO in this Irish newspaper interview.)

A prospectus was published on 19 February 2018, detailing the Zutec’s aim to issue 2,083,334 new shares (at a subscription price of SEK 24 per share – c £2.10, €2.38 or US$2.93) in the company, with a total value of SEK 50 million (c £4.38m, €4.96m or US$6.11m) before transaction costs. Proceeds would be used to:

  • Finance an expansion in sales and marketing with new local offices in strategically selected regions, and working capital for the extensive tender processes in the building and construction industry (approximately 70% of the proceeds)
  • Finance further investments in Zutec’s technology and products (approximately 30% of the proceeds).

On 6 March, Zutec announced the offering had been oversubscribed, with 2,083,334 new shares issued, yielding Zutec proceeds, after transaction costs, of approximately SEK42.1m (c £3.68m, €4.17m or US$5.14m).

CEO Brendan O’Riordan said:

We would like to thank and welcome all of our new shareholders, large and small, for becoming an integral part of our company. The IPO process has been both intense and exciting. With added fuel in the form of IPO proceeds, we now turn our focus back to accelerating the expansion of our growing and profitable business.


Update (8 August 2023) – Since EE last covered Zutec, there have been various changes….

Most notably, in April 2021, Zutec acquired a controlling shareholding in London-based Createmaster, self-proclaimed “experts in process led, construction information handover management” (October 2016 post: Createmaster targets project handover), for an initial cash consideration of £2.4M plus £0.95M-worth of newly issued Zutec shares.

Next, in June 2021, parent company Zutec Holding AB announced a change of name to BuildData Group AB following a rights issue and the acquisition of Createmaster.

Then, in January 2022, Zutec acquired Sheffield, UK-based Bond Bryan Digital, a leading consultancy on information management, ISO19650 and BIM structured data.

Update (6 October 2023) – Bond Bryan Digital has rebranded as Createmaster Information Management (AEC Magazine article).

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