Guys this is getting Ridiculous. Read the Financial Review Article. No wonder we didn't get a look in. I hate the guys for not giving us stock, but from what Geoff Wilson of Wilson HTM saying, they must know what we don't know. He is saying that this could be worth Billions. I will try to buy some on open and hang on to them for few weeks to make a decent killing.
Freelancer reveals chosen IPO investors PUBLISHED: 7 HOURS 8 MINUTES AGO | UPDATE: 1 HOUR 18 MINUTES AGO JAMES HUTCHINSON One of the first investors in Facebook and Twitter, Joel Sng, has emerged as a shareholder in the job-outsourcing website Freelancer.com ahead of the company’s public float on Friday.
Mr Sng, a US-based investor who owns his own job-hunting website, will become a top-20 holder after receiving 500,000 shares at 50¢ each, significantly boosting industry support for the company.
He will be one of 619 retail, institutional and sophisticated shareholders in Freelancer, selected from potentially hundreds more, after the initial public offering for $15 million, or 30 million shares, closed oversubscribed earlier this month.
“We’re very pleased that we have a shareholder register that’s well known, deeply sophisticated in technology and that are well placed to support the company well into the future,” Freelancer chief executive Matt Barrie told The Australian Financial Review.
The list of public investors, revealed on Wednesday, showed prominent local technology investors and institutions. Some institutions said they would seek to increase their stake, after applications for the full $15 million (6.9 per cent) on offer were scaled back. Sydney fund manager Caledonia Investments will hold the biggest public stake, with six million shares worth $3 million.
“They’re not the traditional things that Australian investors who look for a big dividend on cashflow from a mature business are used to,” said Caledonia chief investment officer, Will Vicars. “This is about reinvesting, growing and taking the space while it’s there. Other institutional investors approved include JBS Investments, Cadence Capital, LHC Capital, Wilson Asset Management, Chermon, Milford Asset Management and KIS Capital Partners. Sophisticated investors on the roster include Mr Sng, Seek founders Andrew Bassat, Paul Bassat and Jason Lenga; Xero investor and MYOB co-founder Brad Shofer; and sophisticated technology investor Josh Liberman. Company directors Mr Barrie, Simon Clausen and Darren Williams, who together owned 87.4 per cent of the company as part of the float, bought an additional $1 million worth of shares in the public offer.
“There’s only three companies in the world that have done this on a major scale and Freelancer has taken as far as we can see a lot of the white space at the lower end of the market, for smaller, cheaper jobs. It is near impossible to undercut their market position.”
Paul Bassat, who is a prominent investor in local technology companies, said he had applied for a small stake in the company but wasn’t looking to expand it significantly.
Though Freelancer would not state how many applications it received for the public offering it is believed at least dozens of prospective retail shareholders were knocked back.
“There’s only $15 million worth of stock; of course it’s going to be tight in terms of who gets allocation,” Mr Barrie said.
Freelancer’s 300 employees also took part in a share program worth 1.1 per cent of the company.
The float will value Freelancer at $218 million, or a multiple of 463 times its forecast calendar 2013 revenues.
But fund managers supported claims by Mr Barrie that the valuation was consistent with other technology companies.
“We’re relaxed on short-term profitability and we’d .?.?. like to see them continue to reinvest into the top line,” said LHC Capital principal Marcus Hughes. “The key thing we’re looking for is really revenue growth and profits reinvested in really building a medium-term view to capture the market.”
Mr Barrie pushed back a more-than-$400 million offer from Japanese employment giant Recruit Co earlier this year in favour of an IPO underwritten by KTM Capital. He will maintain a stake worth $100.2 million, and his salary package will double over the next year.
The company is set against two major competitors – oDesk and Elance – for the growing global market for outsourcing minor jobs online.
“When you’ve got potential to add products, stop investing in the business and make profit, this company could be worth billions of dollars,” said Geoff Wilson, chairman of Wilson Asset Management. “This could be one of the greatest technology companies to list on the ASX.”
FLN Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Not Held
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