For international players, listing on the Australian Securities Exchange (ASX) not just gives access to growth capital but also to a number of other advantages such as a highly active exchange, a main board listing and earlier entry to globally recognised indices.
ASX has around 300 international businesses listed, with the companies spread across various markets. It is a very active exchange, witnessing more than 120 IPOs every year and trading volumes at an average of $5.6 billion every day. The Australian stock exchange provides a main board listing, which gives the businesses access to an internationally well-known strong regulatory atmosphere and a range of investors starting from retail to global institutions.
It may also be interesting to know that Australia accounts for the 4th largest pension pool on a global level and is one of the fastest growing. Superannuation assets by March 2019 were recorded at $2.6 trillion, with the value expected to jump to $9.5 trillion by 2035. This huge size of the Australian pension pool is due to the mandatory superannuation system that was rolled out by the Federal Government in the year 1992.
From 2008 to 2018, there has been significant growth in the number of listing of domestic as well as international firms on ASX.
In this article, we are discussing recent technology IPOs on the ASX and the upcoming IPOs in December 2019.
Latest Tech IPOs
Within a week, four technology companies made their debut on ASX, namely MoneyMe Limited (ASX: MME), OpenLearning Limited (ASX: OLL), Nitro Software Limited (ASX: NTO) and Tyro Payments Limited (ASX: TYR).
Let’s know about each of them.
Nitro Software Limited (ASX: NTO)
Nitro Software Limited (ASX: NTO), which got listed on ASX on 11 December 2019, is a global document productivity software company that focuses on driving digital change in organisations across various industries. The main solution of the company is the Nitro Productivity Suite, offering access to integrated PDF productivity and eSignature tools via a horizontal, SaaS and desktop-based software suite.
The company was founded in 2005 in Melbourne, Australia and is headquartered in San Francisco. Nitro gives access to an alternate to Adobe Acrobat for desktop PDF productivity, that was sold online initially. Gradually sales channels have expanded to include the growing sales team along with a global partner network of software resellers.
In 2016, the company started shifting from a perpetual or “one-time” licensing model to a subscription licensing model and began focusing on the enterprise market.
In 2018, the company rolled out a document productivity solution named Nitro Productivity Suite. This solution provides users with PDF productivity tools, eSignature capabilities and usage along with ROI analytics via an integrated desktop as well as a cloud solution.
The key products of the company are Nitro Pro, Nitro Cloud, Nitro Analytics, and other tools and capabilities.
Nitro Productivity Suite’s USP:
- Single solution for both PDF productivity and eSigning;
- Ease of implementation and fast adoption;
- Highly scalable and can be implemented easily and quickly;
- Unlimited eSigning;
- Real-time analytics.
Based on these features, the company can give a strong competition to global giants like Adobe Acrobat.
Nitro officially made its debut on 11 December 2019. In the prospectus, the company highlighted that it aimed to raise ~ $110.2 million with the issue and transfer of 64,093,670 ordinary fully paid shares at $1.72 per share.
MoneyMe Limited (ASX: MME)
MoneyMe Limited (ASX: MME) is a digital customer credit business utilising Horizon Technology Platform, along with big data analytics to offer an innovative loan offering to tech-savvy clients.
Since its establishment in the year 2013, the company has delivered loans worth more than $340 million via lending platform (risk-based). The company is well placed to take advantage of the sector developments and trends.
The company operates in the online consumer credit sector in Australia, where lenders provide customers with finance solutions to meet their personal funding needs. The technology platform of the company facilitates the completion of the application within ~ 5 minutes, with funds or credit facilities made available to the customers shortly after the approval.
The funds raised through the IPO would help the company to pursue growth strategies and invest in its core business. Moreover, MoneyMe would direct the funds towards boosting its market entry as well as developing the total addressable market via product innovation & extension into new markets. Additionally, the net proceeds from the offer would be used for repayment of corporate debt.
The company had sought to raise funds to get the benefits of an increased profile that arises from getting publicly listed, enable existing shareholders to realise all or part of their investment, and provide a liquid market for shares and a chance to others for injecting funds into MME.
MME got listed on 12 December 2019 with a successful $45 million IPO, which received immense support from institutional and retail investors.
OpenLearning Limited (ASX: OLL)
Software as a service company, OpenLearning Limited provides a next-generation, cloud-hosted lifelong learning platform, enabling education providers and enterprises to deliver effective online social learning, employee onboarding, and workplace training. The company offers access to a global marketplace of world-class courses to learners.
Its platform facilitates the delivery of project-based, social learning to promote interaction amongst users as well as encourage a group of collaborative learners. The company has more than 1.72 million learners across the world with 8,000+ courses offered by 60 education providers.
OLL commenced trading on 12 December 2019 on ASX. Through the IPO, the company raised $8 million by issuing 40 million shares at $0.20 per share. Canaccord Genuity Patersons Limited acted as the lead manager. The offer was opened on 13 November 2019, and it received applications from investors well in excess of the maximum raise of $8 million by 18 November 2019, which included a strategic investment of $1 million by Australian Catholic University.
Tyro Payments Limited (ASX: TYR)
Tyro Payments Limited (ASX: TYR) made its debut on ASX on 6 December 2019.
Tyro Payments (ASX: TYR) is a technology-centred and values-driven organisation, engaged in offering Australia-based businesses with simple, flexible and reliable payment solutions, in addition to value-adding business banking products.
Upcoming Tech IPOs:
Openpay Group Ltd is soon to get listed on ASX under the proposed ASX code OPY. Its proposed listing date is 16 December 2019. Through this IPO, the company expects to raise $50 million with the issue of shares at a price of $1.60 each.
Payments technology firm headquartered in Melbourne, Openpay Group Ltd gives access to an omni-channel payment solution that provides clients with flexible, interest-free payment arrangements, in-store, online and via the Openpay App.
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