The company is now hoping to raise $2.4 million through an initial public offering (IPO) of 9.6 million shares at 25 cents per share in order to develop its first commercial rig for operations in Australia. The offer closes on 14th July, valueing the company at around $9 million.

The unit operates by running through underground pipes repairing and sealing them to prevent further leaks, reducing costs as there is no need to dig trenches to remove the pipe for repair.

ShieldLiner already has several powerful alliances with the Alinta-backed National Power Services and water industry contractor Premium Corporation.

Managing director John Hassen believes the unique application of the technology will make it invaluable to the water, energy and mining industries where the cost of replacing large pipes over long distances can be crippling.

“We are not restricted by the size of the pipe with the unit able to work in any space above 100mm, so when pipe is costing around $1000 a metre or more our repair system presents a much sounder fiscal option,” said Hassen.

“The actual rig will fit into a 20 foot container on the back of a truck making it easily transportable and we ultimately hope to operate five or six rigs around the country and more overseas.”

Hassen said that a large proportion of gravity pipes such as sewers and pressure pipes such as oil and gas mains in cities around the world are reaching or have exceeded their design life placing ShieldLiner at the forefront of a blossoming new industry.

A prototype rig has already been successfully demonstrated in the field and the first commercial version is expected to be ready by September.

“There may be similar systems available for gravity pipes but what we offer can be used in pressure systems making it unique and highly applicable to the oil and gas industry,” added Hassen.