IPO, page-3

Have you used the software before? Or know anyone that has? It's quite remarkable, has a monopoly position as conveyancers that use it swear by it.

Puts it a in a similar sort of position as Xero, the obvious limitations (unlike Xero) are the conveyancing itself across geographies. For example the U.S is not currently a viable expansion target. NZ and the U.K are, which is where the valuation get's it lofty multiple. They have taken pretty large market share already in Australia, so the growth is fairly limited. Unless of course we start to see increased migration to Aus (high probability) and we see the change to stamp duty in NSW that is proposed as well across other states. It's clear the government wants to design policy to increase the turn over of housing stock. This directly benefits Pexa, the same could be said for U.K housing, they also have a similar problem to us.It seems to be a similar story of first mover winner takes all. Given the regulatory hurdles one has to jump through, it's going to be years before anyone can challenge their market position.

Definitely some risk in the valuation but if it successfully expand and we see increased turnover in housing stock, could be a good long term play IMO.Unfortunately (or fortunately) my allocation is tiny so either way It's not going to move the needle very much. Will be interested to see how this goes after NXL's completely disaster.