An Australian car safety start-up is preparing for its public debut, hoping to raise millions to develop an advanced reversing alarm.

Auto Innovations Group wants to raise $10 million in equity by going public, which will help it commercialise its patented Reverse Alert System.

Rear sensor alarms and cameras are already a standard feature in new cars, but the new product aims to go further, by incorporating an automatic braking system.

The company says its Reverse Alert System could be installed as an added extra for new cars at a dealership, or retro-fitted to older vehicles.

It should retail for about $695 and require just a few hours of labour to install.

Many of Auto Innovations Group’s existing shareholders have tragically killed their own child in a reversing accident, or been close to someone that has.

But while the inspiration comes from such household tragedies, the company is targeting corporate fleets as a key market.

“In light of the focus by industry on workplace health and safety and maximisation of productive workplace, vehicle reversing incidents, which result in personal injury and property damage are costly to and are of major concern for business operators,” Auto Innovations Group chair, David Jenkins told Fairfax Media.

Logistics giant Toll Holdings and Queensland company North Coast Taxis have trialled the devices in recent months, and say they will look at rolling them out more widely across their fleets.

A United States patent has been secured, and patent applications are pending in other markets including Australia, Japan, China, Canada, and South Africa.

About 83 per cent of the company will remain under the control of existing shareholders, the biggest of which is Preservation Solutions; a bundle of co-founders that together hold a 20 per cent stake.

The IPO is seeking to raise at least $10 million, which would give the company an indicative market capitalisation at listing of $60 million.