A bit of info on the S&P Technology Index in today's AFR. Novonix mentioned as a new entrant!

https://www.copyright link/technology/all-tech-index-adds-33b-in-value-in-three-months-20200904-p55sdx

All Tech index adds $33b in value in three months

Yolanda RedrupReporter

Sep 4, 2020 – 2.27pm

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The value of companies on the All Tech Index is set to swell by more than $40 billion when it goes through its second rebalance, with eight new companies set to join the index.

The huge growth in value has been driven by the biggest companies on the index, with the likes of Afterpay, WiseTech and Xero all recording strong growth in the last three months.

The ASX's Max Cunningham says there is a strong pipeline of tech listings coming through. Rhett Wyman

Since June the share prices of Afterpay and WiseTech have surged 69 per cent and 38 per cent respectively.

The eight new companies to join the index are Dicker Data, Brainchip, Envirosuite, Mach 7, Novonix, Splitit, Sezzle and Whispir.

Speaking to The Australian Financial Review, ASX executive general manager of listings and issuer services Max Cunningham said the market cap of the index had increased from $110 billion to $143 billion.

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"It's a significant leap and it's reflective of the market cap moves from the likes of Afterpay and Xero," he said.

"There was no real change to the top 10 companies, except for WiseTech continuing its recovery post all of its challenges last year with the short sellers ... and going from fifth to fourth.

"Of the new companies joining, five are Australian, two are from the US ... and for the first time on any Australian benchmark index there is an Israeli company in Splitit."

Of the eight new companies on the index, Splitit and Sezzle are both buy now, pay later competitors and like Afterpay have recorded substantial share price jumps this year. These companies now trade on market capitalisations of $611 million and $772 million respectively.

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But the most valuable of the new stocks featured on the index is Dicker Data, which already has a market capitalisation north of $1.2 billion.

The business had not been included on the index until now because until this quarter it did not meet either the 30 per cent free float requirement, nor the requirement for 30 per cent of its stock to be traded in a year.

Communications software business Whispir, which is trading up more than 160 per cent for the year to date and has a market capitalisation of $434 million, has been one of the best share price performers this year.

Whispir chief executive Jeromy Wells said the company's inclusion would further heighten its profile in the market.

"Whispir’s inclusion in this important industry index is a reflection of the quality of our business and customer base, which has been built on strong recurring revenue streams," he said.

"The Australian technology sector, as defined by the S&P/ASX All Tech Index, has a key role to play well beyond COVID-19, and our communications workflow platform is a key contributor, generating substantial value for our customers.

"We are well positioned for future growth and support long-term macro communications trends, such as process automation, digital customer engagement and broader digital transformation projects."

Once you've made it into the top 100, you can't be ignored by the big end of town.

— Max Cunningham, executive general manager of listings and issuer services, ASX

At the same time as the tech index was rebalanced, AI data services company Appen joined the top 100 index.

"This bolsters the emergence of technology as a genuine listed alternative. We talk about the emergence of these companies and the All Tech Index, but many of these companies are still accessed by retail and small cap fund managers," Mr Cunningham said. "But once you've made it into the top 100, you can't be ignored by the big end of town."

Mr Cunningham was optimistic there would be at least another handful of tech companies go public in the ASX in the next few months, with businesses such as Plexure, Zebit and Laybuy already in the works.

"We've had a material turnaround in the pipeline. There's a huge number coming to market," he said.

"Tech and gold explorers make up about 80 per cent of the companies coming to market. The gold companies are much smaller, though ... overwhelmingly the tech companies are valued at $100 million to $500 million."