• Over $1.5 trillion in turnover and 145 IPOs on ASX for 2017
• Industrials, Technology and Consumer Products are the most active
• Singapore’s SportsHero listed on ASX in 2017
As we have seen in recent years, there are several technology startups that have opted to list on the Australian Securities Exchange (ASX) instead of other exchanges in the region such as Singapore and Hong Kong. In 2017, we have seen 154 IPOs on the ASX and has achieved a turnover of over $1.5 trillion (whole of ASX).
Based on the EY’s Global IPO Trends 4Q2017 report, Industrials, Technology and Consumer Products ranked on the top 3 of the sectors that has IPO in Asia Pacific ex. Japan. Notably, Singapore’s SportsHero listed on ASX at AUD 0.05. As at 26th January 2018, the price of SportsHero stands at AUS 0.18. This would translate to a high return of 260%.
Other than the lower fees associated with listing on the ASX, there are four key reasons that companies are listing there.
Australian investors are savvier and have been receptive towards investing in companies in earlier stages. In addition, there are ample funds in Australia coming from institutional and individual investors using their superannuation funds. Australia is set to become the number 1 in Asia Pacific as its pool of investable funds is projected to grow to $10 trillion by mid-2030.
Australia has a long history of funding and listing technology companies such as Rewardle and Domain Holdings Australia. It one of the top ten exchanges globally for raising capital and have over $1.5 trillion turnover in 2017 which shows amply liquidity in the market. In 2017, ASX listed 145 new listings.
Supportive Admission Criteria
To support early stage companies, ASX has supportive criteria that will help companies to meet the eligibility.