Many software companies from around the world look to list in the USA – as that is where markets and valuations are
the Australian ASX and other Exchanges around the world are becoming viable options….
Positive news for innovative companies that have commercial opportunities!!
Both Atlassian and Xero (Xero currently listed in Oz and NZ , may go ahead with plans for a United States listing, and the Baker & McKenzie Cross-Border IPO Index indicates that the number of companies listing on foreign exchanges is rising sharply.
Australia was a stand-out performer , with one of its strongest half-year performances in the past decade.
Freelancer.com chief executive Matt Barrie has promoted the ASX as a home for Australian technology companies seeking access to public markets. He listed Freelancer on the ASX last November.
Keep your eyes open for the IPO of Chinese online retailer Alibaba Group in New York in the pipeline.
The biggest winner was North America, with companies raising $US7.9 billion in 27 cross-border IPOs in North American exchanges in the first half of 2014, a 274 per cent increase year on year. The lion’s share went to Nasdaq, with $US5.8 billion raised in 18 cross-border IPOs. The biggest listing was China-based JD.
In the Asia Pacific, the Hong Kong stock exchange dominated with $US6.1 billion in 35 cross-border IPOs, led by the listing of China-based Harbin Bank .
“Resources companies have traditionally gone to the US, Toronto or London,” Frank Castiglia from Bajer and Mckenzie told BRW
“For technology the heartland is still the US and it’s having an investor base which understands the companies and attributes appropriate value and also being close to the customer base as well.”
” Companies that deploy technology for their basic business model, like Freelancer or Virtus where technology is part of but not the dominant feature, the ASX is a very viable and helpful option,” Castiglia says.
“One of the things that makes [the ASX] very attractive to many companies and particularly early-stage companies is the listing rules and the flexibility around that. Companies at an early stage, for example, can list under the assets test so they don’t need a profit track record, so getting on the exchange is relatively easy compared with the rest of the world. And also you’ve got very good listing rules to facilitate further capital raising, probably the best in the world.”
For inbound IPOs, Castiglia says the ASX has traditionally attracted resources company listings, but more recently has proven attractive for foreign life sciences and biotechnology firms such as US-based companies, Osprey Medical and GI Dynamics.
Castiglia says globally exchanges are looking at facilitating more dual listings and should consider fast-track procedures, such as those of AIM, the secondary exchange in London.
For more info on how to find VC – call us