Capability X defies AI blues with stellar ASX debut

Detailed summary

Perth AI developer Capability X has defied a poor IPO market and recent technology stock weakness, surging almost 50% to close at 29c on ASX debut after raising $12 million to…

AI-driven industrial safety developer Capability X has announced itself to the Australian sharemarket in spectacular fashion, hitting an intraday high of 30 cents on debut today – a whopping 50 per cent premium to its 20-cent IPO price – before closing at 29 cents, delivering a welcome shot in the arm for a decidedly lacklustre new listings market.

The performance was particularly noteworthy given the recent battering of global AI stocks, where investors have begun questioning the enormous valuations and eye-watering spending associated with the technology boom.

Australia has hardly escaped the nerves, with investors becoming increasingly selective about backing new floats and capital raisings, especially in the technology sector.

Yet the company appears to have struck a chord with investors, offering something rather different from the usual AI promises – technology already deployed in industrial workplaces, backed by commercial contracts and a $12 million IPO war chest.

Perth corporate advisory firm Westar Capital steered the company onto the ASX after previously backing a pair of seed raisings at 10 cents and 16 cents a share, each worth $2 million.

Behind the market excitement is founder and chief executive Chris Eastwell’s ambition to turn Capability X into an industrial intelligence powerhouse.

Its flagship CX Edge platform combines laser sensors, cameras and proprietary AI software to create a three-dimensional digital picture of busy industrial environments, identifying potential hazards before they become accidents.

The technology is already attracting serious commercial attention. ASX-listed Bhagwan Marine has signed a multi-year arrangement for remote operations, communications and safety systems, while logistics heavyweight Qube Ports has committed to a three-year deployment of the company’s CX Protect technology.

Offshore operator GO Offshore has also signed up for the company’s safety monitoring systems.

Opening of the article, excerpted from The West Australian. To read the rest, open the article on the publisher's site.