New ASX All Technology Index set to launch; To boost tech IPOs-TYR, MME, OPY, LME

  • Feb 17, 2020 AEDT
  • Team Kalkine
New ASX All Technology Index set to launch; To boost tech IPOs-TYR, MME, OPY, LME

The ASX is going to launch a new index for the technology stocks, a sort of ‘mini NASDAQ’ which will be named as the S&P/ASX All Technology Index. The new index has been designed to include more stocks across all the market caps and will be more inclusive than the currently IT sectoral index - S&P/ASX 200 Information Technology Index, which will represent all range of ASX-listed companies present in the tech space.

Currently, the S&P/ASX 200 Information Technology Index constitutes those IT companies that are there in the ASX 200.

Therefore, the new index is anticipated to bring in limelight the profile of those ASX tech companies that are undervalued, though have big potential hidden to investors  compared to the big WAAAX stocks like WiseTech Global Ltd (ASX:WTC) , Afterpay Ltd (ASX:APT) , Appen Ltd (ASX:APX) , Altium Limited (ASX:ALU) , and Xero Limited (ASX:XRO) .

The All Technology index will help in better evaluating the performance of the ASX tech players and will also give exposure to junior tech players.

Additionally, All Technology index will give the platform to the number of tech IPOs in 2020, after a decline in the number and value of IPOs in 2019. Despite this, in 2019, the tech stocks represents the largest number of new ASX listings.

The market projects that 90 new tech stocks will get listed by the end of 2020. The major tech IPOs that had come in 2019 were Tyro Payments Ltd (ASX:TYR), Moneyme Ltd (ASX:MME) , Openpay Group Ltd (ASX:OPY) and Limeade Inc, are discussed below-

 

Tyro Payments Ltd  (ASX:TYR)

  • Set to Provide Medicare Easyclaim Claiming Services: Tyro Payments Ltd (ASX:TYR) is an Australian fintech company that provides EFTPOS solution & in e-commerce as it helps in transaction processes through the provision of bank account, loans, and security activities.

 

The technology driven payment solutions provider will now be providing Medicare Easyclaim Claiming Services as its tender to the Department of Human Services (DHS) got successful. DHS is now preparing the new contract which will be given to the company soon.

TYR traded at $4.440 on 17 February 2020 (2:27 PM AEDT). Meanwhile, TYR stock has risen 28.07% in one month as on February 14th, 2020.

 

FY 19 Financial Performance (source: Company’s Annual Report)

 

Moneyme Ltd (ASX:MME)

 

  • Strong Trading Update: Moneyme Ltd (ASX:MME) offers a platform to give unsecured personal loans & virtual credit card to the customers so that they can access the credit directly from their mobile phones.

The fintech player, for the first half 2020, has posted about 85% increase in the gross loan originations year on year against the full year projection of 62% given in prospectus of the company. At the end of January 2020, the gross loan book had increased to about $133.8M (unaudited), which represents about 94% of the full year FY20 Forecast provided in Prospectus of $141.9M. 

Therefore, at the end of June 2020, the closing gross loan book is anticipated to be significantly more than the FY20 Prospectus Forecast. Moreover, the credit quality & loss rates are anticipated to meet or beat guidance given in the Prospectus and Sales and Marketing costs are anticipated to be in line with FY20 Prospectus forecast. 

MME traded at $1.790 on 17 February 2020 (2:27 PM AEDT). Meanwhile, MME stock has risen 17.76% in one month as on February 14th, 2020.

 

Openpay Group Ltd 

  • Decent Business and Financial Performance: Openpay Group Ltd (ASX: OPY) offers Software-as-a-Service (SaaS) for online shopping of apparels, beauty, garden, home, automotive, health, etc.

 

The BNPL player, for the first half 2020, has delivered 73% rise in the revenue to $8.4 million on the prior corresponding period. The company has recently signed an agreement with major Australian retailer, Woolworths Group (ASX:WOW) for its new business-to-business (B2B) platform, Openpay For Business. The company plans to launch its B2B platform and have the corporate infrastructure in the UK. Moreover, the company for fiscal 2020, projects Earnings Before Tax to be in the range of $35-40m.

Additionally, in January 2020, the company has posted 86% increase in the Total Transaction Value (TTV) to $15.7m, and 58% rise in the revenue to $1.9m. The Company’s cash and liquidity stood at $46.3 million at the end of January 2020. Furthermore, the company has not yet used its existing debt facility and secured the second facility of $25 million, which means the company has funding facility of total value of $75m to underpin the anticipated growth. The company is in discussion with a number of financiers for securing additional facilities that will help in offshore growth.

OPY traded at $1.310 on 17 February 2020 (2:27 PM AEDT).

 

Limeade Inc

 

  • Signed 13 new contracts in December quarter: Limeade Inc (ASX: LME) offers software-as-a-service as it provides platform to engage employers and employees for enterprise healthcare benefits, self-improvement, and employee assistance programs.

 

The company had raised A$100 million (US$68.4 million) due to its listing on ASX. During the December quarter, the company had signed 13 new contracts. Contracted annual recurring revenue (CARR) has risen 6.9% quarter-over-quarter at the end of December 2019 to US$57.1 million and grew 20% year-over-year on the back of rise in new direct customer signings and upselling and expansion initiatives with existing customers.

The company generated Net operating cash outflow of US$2.2 million during the December quarter & company’s cash balance stood at US$32 million as at 31 December 2019.

 

LME traded at $1.860 on 17 February 2020 (2:27 PM AEDT).


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