IPO, page-31

THIS IS A REPOST FROM LINK"S THREAD

I've looked into the prospectus to confirm my assumptions.

Its a little bit strange.

So, MS wants partially out and then LNK is buying some stake.

Revenue growth it seems has been spectacular this FY, but then next FY growth from the base is very sad for a growth company. This is because they've almost hit saturation.
To operate in the UK, you need a operating license and then comes General Data Protection Regulation (GPDR) so PEXA has work cut out for them. This is a lot harder as UK is very weary about external companies selling their user information, if they do. This is a regulation risk.

UK market is IPO spin. I know how investment bankers work. Almost feels like NUIX.

The technology is nothing much, just a glorified CRM which talks to States information database.

Competitors are Simply and Lextech so they will they not achieve 100% market penetration here.

If you take 4.2 million settlements annually out of 10 million dwellings in Australia. That is about 42% of Australian property related transaction annually and PEXA has about 3.5 million settlements.

Now is that even possible? But that's the numbers they've got out.

If you looks at FY21 at 3.3 million transaction, projected revenue generated before costs is 218 million. The ARPU is $66. So a total market capture at 4.2 billables is $277 million revenue and then it stops so then you have to apply a tech multiplier on margins then you get the fair price to be massively overvalued. I don't wanna put a number on it as don't wanna upset who want to buy stake. It is severely overvalued.
I'll put a number on it after its annual report lodged with ASIC.

I do like the business but I don't buy the valuation.

I don't see value and I don't see a multi-bagger so I'm not even in.

Lets have a respectable debate guys.