Could CMY be the backdoor listing of Updater? Even though they...

Could CMY be the backdoor listing of Updater? Even though they have ambitions to target an IPO in Feb 2016.

US tech firm Updater to launch ASX IPO en route to Nasdaq
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Updater chief executive David Greenberg says the business was seeded by Australian investors and he had planned the ASX float for some time.
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by Yolanda Redrup
The provider of an online platform that helps people cope with the myriad difficult details around moving house is set to become the latest US-based technology company to undertake an initial public offering on the ASX.
Home relocation platform Updater, which provides a centralised service for people to arrange services such as mail forwarding and updating addresses, is valued at $49 million and has backing from a number of Australian venture capital funds and high-wealth individuals, including Domain Group chief executive Antony Catalano.
The move follows a successful ASX listing for US-based online recruitment specialist 1-Page in October 2014, and Updater founding chief executive David Greenberg told The Australian Financial Review his company had decided to list on the ASX because it provided a good pathway to a future listing on the Nasdaq.
"It was seeded by Australian investors about five years ago and the ASX has been in the back of my mind for a long time," he said.
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The Updater team is set to double as the business aims to grow from 1.6 per cent of the home moving market to 5 per cent in just over a year. Supplied
"In two to three years we see the company as a multibillion-dollar industry leader on the Nasdaq and I'm always doing what I can to put the business on that trajectory."
RECENT FUNDING

The business recently raised $6 million in a pre-IPO round which also attracted Australian investors, including more than five major funds. The round broughttotal funding of more than $US9.5 million ($15 million).
In the United States, its major backers include SoftBank Capital (which has invested in Alibaba, Buzzfeed and Fitbit), IA Ventures and Commerce Ventures.


"Listing on the ASX will enable us to grow the public company and then, when our market cap is large enough, we'll cross onto the Nasdaq," Mr Greenberg said.
"The next five years look really exciting and the business is starting to seriously scale."
Updater hopes to follow a similar growth trajectory on the ASX as fellow US tech startup 1-Page. After a backdoor listing, debuting at 20¢, it is trading at more than $4.70, having reached $5.69.
"We expect to have a similar performance," Mr Greenberg said.

"We were overwhelmed by how strong the support was [in the pre-IPO capital raising]. We were heavily oversubscribed."
But despite planning to list on the ASX by February 2016, Updater has no plans to launch its product in the Australian market.
AUSSIE LISTING, US FOCUS

Mr Greenberg, formerly a corporate attorney, said for the time being Updater's focus was just on the US market where there was a bigger opportunity.

"For our business I think it would be a distraction to look at expanding to foreign countries. It would be a bit premature," he said.
"The US has one of the most transient populations in the world. Approximately 40 million people move every year and the average American moves 10 to 15 times in their life."
The business, which was launched in 2010, processes 26,000 moves per month and operates in a $15 billion industry. Moelis & Co is advising the float, as flagged by Street Talk.
Over the next 12 months Updater is aiming to grow its market share from 1.6 per cent of home movers to 5 per cent by the end of 2016.
To achieve this, it is planning to double its team of 30 people (including contractors), strategically hiring sales staff with more than five years of experience in the real estate industry.


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