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Tech juniors move in on resources, biotech capital
PUBLISHED: 09 Jan 2015 02:24:41 | UPDATED: 09 Jan 2015 06:05:52
atient Australian investors have long supported early stage resources and biotech companies, attracting blue-sky hopefuls from all over the world to the ASX boards.
But technology entrepreneurs and bankers reckon the times are changing. And in a sign of where we can expect to see the a large share of this year’s float candidates, they reckon that same level of understanding and support now extends to the tech sector.
Tech companies want to cash in on the support and are seeking their share of superannuation dollars flowing into the Australian equities market each month. It’s one of the key reasons why US-based mobile marketing company Other Levels is considering an ASX listing. US strong venture capital market
For a company like Other Levels, the United States has a strong venture capital market and deep pools of public money. While listing means stricter governance requirements, the likes of Other Levels reckon that can be good for a growing tech company.
And if you want to list a company, the major US exchanges are not interested in supporting smaller companies. Demanding listing requirements mean companies need at least a $160 million market capitalisation to make it in the US.
Listing tech companies is more about providing venture capital an exit in the US, rather than raising growth capital. As first reported by Street Talk on Thursday, Other Levels is looking to lodge a prospectus with the Australian Securities and Investments Commission in early March and float by mid-May.
It should ensure a busy year for investors and brokers focused on tech stocks. And, of course, the bigger end of the market is also bracing for a round of tech listings including software companies MYOB and WiseTech Global.
The Australian Financial Review
