U.S. Is Biggest Source for Australia’s Tech Listing Pipeline
(Bloomberg) -- The U.S. is the biggest source of technology listings in the pipeline in Australia by number and size, Australia’s market operator, ASX Ltd. says. Markets in the U.K., Israel, Singapore and Malaysia also have “good engagement,” the company said.
A year after the launch of the S&P/ASX All Technology Index with 46 members, the gauge has now blossomed to 75, with an index market capitalization of A$160 billion ($120 billion). Over the past 12 months, the index has surged 79%.
Of the 75 members, 58 are Australian, with the remainder international including five from New Zealand and five from the U.S. “The pipeline we have for foreign tech listings at the moment is half a dozen, maybe a few more from the U.S,” ASX’s Executive General Manager, Issuer Services and Investment Products Max Cunningham said in an interview Thursday.
Most recent domestic tech listings fall into the consumer and Internet of things spaces. On March 26, pet-sitting platform MadPaws opened at A$0.29 after an IPO priced at A$0.20.
Upcoming tech IPOs include game developer Mighty Kingdom Ltd and fintech company Propell Holdings, with shares of both Australian companies expected to start trading in April. The two pending IPOs have a combined value of A$17.8m according to Bloomberg data.
With “the combination of a strong IPO market and Zoom being the new normal, which actually means you can cram more meetings into a day,” Cunningham said he is optimistic for three to four tech IPOs each year from New Zealand and another two to three per year from other markets.
“If we get half of them that’s going to still be a really good outcome,” he said.
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