WiseTech IPO Set to Be One of Australia's Biggest Technology Listings
March 17 2016 - 11:40PM
Dow Jones News
MELBOURNE, Australia—WiseTech Global Ltd., a software company
launched out of a Sydney basement in the 1990s, has laid out plans
for one of Australia's biggest ever technology listings.
The company said Friday it had lodged a prospectus with the
country's securities regulator for an initial public offering that
could see it list with a market value of more than 1 billion
Australian dollars (US$764.8 million), after raising A$100
million-A$220 million.
The Australian Securities Exchange has attracted a number of
technology listings among a flurry of IPOs in recent years, albeit
mainly of smaller companies. The government under Prime Minister
Malcolm Turnbull is pushing the development of the country's tech
industry as the economy grapples with a slump in investment and
jobs in mining and energy.
Chief Executive Richard White, who founded the company at his
home in 1994 with little more than his credit card to fund
development, defended his decision to remain in Australia and opt
for a local listing.
Sydney-based software firm Atlassian Corp. raised about US$430
million and garnered a more than US$4 billion valuation listing on
Nasdaq in December, and Atlassian co-CEO Mike Cannon-Brookes this
week told a business conference that Australia lacked sophisticated
tech investors and an ASX listing would have meant a lower
valuation for the company.
"Along the way, people have told me that being Australian, it
wouldn't work," Mr. White said. "It isn't about which stock
exchange you list on, it's about the people."
An ASX listing, he said, would provide WiseTech with sufficient
funds to continue growing and give it a base for further
acquisitions but more importantly would lift the company's profile
among global clients, many of which are themselves listed.
"We are not in a mad rush to raise capital," he told reporters.
"We'll get more than enough cash out of Australian investors."
The largest tech listing in Australia to date has been that of
MYOB Group Ltd. The accounting software firm raised about US$668
million last year, giving it a postdeal market value of US$1.71
billion, according to data from Dealogic.
Dublin-based health-care software provider Oneview Healthcare
PLC made its debut on the ASX on Thursday, with its shares rising
2.5% above the offer price in an IPO that raised A$62.4 million to
help fund the rollout of its product. Also this week, Redbubble, an
online marketplace for stationary and other printed items, said it
had raised A$12 million ahead of a June IPO aimed at bringing in a
further A$50 million to fund growth.
However, cryptocurrency "miner" Bitcoin Group Ltd. earlier this
month pulled plans to float, blaming a call by the exchange to
prove it will have enough capital to run its operations.
WiseTech provides customizable freight-forwarding and customs
software, and recently signed a 4½ -year contract with DHL Global
Forwarding GmbH that it estimated would deliver revenue of up to
A$60 million.
The retail offer is set to open March 29, and early trading is
scheduled for April 11. According to the prospectus, WiseTech plans
to issue up to 75 million shares priced at between A$2.58 and
A$4.12 each. Based on that, it expects a market value for the
company of between A$762.9 million and A$1.19 billion.
In April, the company raised A$80 million from investors
including Fidelity Worldwide Investment and Sydney-based boutique
investment manager Smallco, to accelerate its growth ahead of the
IPO.
Mr. White, who will retain a stake of about 50% in his company
after listing, said the company had been profitable for the last
decade. In the year through mid-2015, it had a profit of A$10
million on revenue of A$70 million, according to the
prospectus.
Blackpeak Capital Pty. Ltd. is acting as financial adviser to
WiseTech for the IPO, and Credit Suisse (Australia) Ltd. and Morgan
Stanley Australia Securities Ltd. are joint lead managers.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
March 17, 2016 23:25 ET (03:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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