The operator of the Australian securities exchange, ASX Limited, reported a strong profit result in fiscal 2014 with a long list of tech IPO’s helping to boost gains. The stock exchange saw 107 companies list in the year with about 12 being tech listings and ver the next 12 months there'll be a raft of tech companies lining up to join their ranks.
Freelancer is an example of an Aussie tech company that made strong gains on listing on the ASX and in a recent story for Linkedin, CEO Matt Barrie says there’s going to be many more listings, “I think that the ASX will be the primary way in which technology companies raise equity in this country in the future. The ASX realises this as well, and is moving to position itself as a regional hub for the Asian technology sector.”
IPOs worth watching
WiseTech – makes freight and logistics software and with strong growth and revenue prospects there’s plenty of interest. The company has an established profit base and there are suggestions it will list within 12 months and should do so with a market cap north of $1 billion.
BPS Technology – operates trading and payment technology platforms. The company runs Bartercard and owns the SaaS platform on which it operates. It’s set to list next week.
Urbanise – is a cloud based building management platform. The company’s based in Dubai and with interest growing from both investors and customers their imminent IPO is sure to be well scrutinised.
Tech IPO success
XERO FPO NZ
(ASX:XRO) listed in November 2012 at $4.50, now at $22.83.
Freelancer Limited
(ASX:FLN) listed in November 2013 at $0.50, now at $0.84.
iSentia Group Limited
(ASX:ISD) listed in June 2015, at $2.04, now $2.63.
3P Learning Limited
(ASX:TPN) listed in Jul 2014 $2.50, now $2.25.
Reverse Takeover
Earlier this month a junior explorer from WA, Intermet Resources
(ASX:ITT), acquired a wholly unrelated Silicon Valley startup called 1-Page. The process is termed a ‘reverse takeover’ and it allows smaller companies to essentially takeover another company’s stock market placement without the rigmarole of launching an IPO.
With the iron ore price sliding, and investors nervous about their share holdings, there are a lot of junior explorers that are looking for a way out. In a unique system of attrition it seems the growing tech sector is more than happy to step into the breach.
Bulletproof Group Limited
(ASX:BPF) took-over Spencer Resources
(ASX:SPA) in 2013. They took on the company’s shareholders, changed the name and went about divesting the mining assets, avoiding the costs of building a list of shareholders.
Latin Gold
(ASX:LAT) took on the social entertainment platform mig33
(ASX:MIG) in the pursuit of growth and returns.
The energy company GRP Corporation
(ASX:GRP) has been taken over by Spring Networks. It has appointed a new CEO and will be renamed soon.
And, the exploratory uranium mining company Prime Minerals
(ASX:PIM) has merged with Cocoon Data Holdings. The resources company will now be at the forefront of the cyber security industry as it takes on the Covata technology.
Earnings results
iSelect Limited
(ASX:ISU) has reported its full year profit figure dropped 53 per cent in fiscal 2014. The online comparisons company reported a net profit of $6.3 million citing writedowns in forecasts of trail commission revenues as driving the contraction.
SEEK Limited
(ASX:SEK) has reported a 35 per cent drop in net profit in the 2014 financial year. The online jobs advertiser has given an upbeat appraisal of the full year result with earnings growing 29 per cent. The company hopes to complete the purchase of JobStreet by the end of September which has been flagged as a key driver of revenue growth.
Carsales.com Limited
(ASX:CRZ) announced that earnings were up 15 per cent to $138.4 million. Net profit after tax came in at $95.5 million, up from $83.5 million in the 2013 financial year but still below analyst expectations of around $99.5 million.
