Pexa Has Muted Debut After Australia’s Biggest IPO This Year

Online property exchange Pexa Group Ltd. finished 0.1% higher in its trading debut on Thursday after raising about A$1.2 billion ($899 million) in Australia’s largest initial public offering so far this year.

Shares closed at A$17.15, compared to the IPO price of A$17.13, putting Pexa’s market capitalization at A$3.04 billion, data compiled by Bloomberg show.

Pexa’s largest shareholder is Link Administration Holdings Ltd., which bought a stake in 2018 as part of a consortium that included Commonwealth Bank of Australia. At the time, Pexa was the brand name of the company then called Torrens Group Holdings Pty. Link still holds a stake of more than 40%.

Australia’s IPO market has fizzled in recent months after a promising start to 2021, with three companies that were seeking to raise an almost A$900 million combined pulling their offerings in May on weak investor demand. Before Pexa, the market’s biggest IPO in 2021 was non-bank lender Pepper Money Ltd.’s A$500 million offering.

Barrenjoey Capital Partners Pty, Macquarie Group Ltd., Morgan Stanley and UBS Group AG are lead managers for the offering.

©2021 Bloomberg L.P.

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