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Ross McDowall

Technology and International Stock Exchange Listings for US companies

An IPO is often the most important capital markets and wealth creation event in a corporate life cycle. Unmatched access to capital at a lower cost is a clear benefit in favour of an IPO, along with corporate branding opportunities and a host of other benefits.

Companies consider three things when choosing a listing location—the actual out-of-pocket costs for establishing and maintaining the listing, the effects on valuation and liquidity, and the nonfinancial benefits.

However, before addressing these substantial IPO listing considerations a US private company considering an IPO, with a value of less than US$1 billion must realise that it is almost certainly too small to list successfully in the USA these days. Moreover, the competitiveness of the US public market has been seriously challenged in recent years as indicated below:

  • The age of companies at time of a US IPO has increased (from ~6.5 to ~10.5 years);
  • The annual number of US IPOs decreased (from ~400 to ~100);
  • The valuation of US IPOs has increased more than 6x.

IPOs in the United States typically have significantly high expenses. Legal and accounting fees, printing, brokerage charges to raise the capital, insurances, director fees and other related expenses are substantially higher than in many other countries.

In particular, companies trying to go public in the US are prone to litigation and enormous expense. Floats are fewer but larger, because by the time the company reaches a stage where it can afford to list, it is mature. For a technology company to list on Nasdaq, it needs to be circa US $ 1 billion to get any traction. Conversely, listing overseas, for example on the Australian Securities Exchange (ASX), can present itself as the ideal market for technology companies valued under US$ 1billion.

The Securities and Exchange Commission (SEC) regulatory compliance expenses are also significantly higher than internationally. These expenses can become very material for companies having a post-IPO market value of less than US$ 1billion. It is often felt that in the United States a small company has to pay too much in fees and discounts when it sells its stock to the public.

Destinations for US companies under US 1billion in value.

There are two self-contained regions that are popular with US companies wishing to go public, outside of the USA, which are Europe and Asia Pacific. However, Australia also represents an increasingly popular destination.

Why are foreign companies listing in Australia?

Australia’s large fast -growing pension pool, main board listing and earlier entry to globally recognised indices makes the ASX the exchange of choice for international companies. To date, more than 280 international companies are listed on ASX.

Access to growth capital is the major attraction of the ASX for international listings and this article explains how and why this is the case.
Australia has the fourth largest pension pool globally and also one of the fastest growing. Superannuation assets total A$2.6 trillion and this is predicted to grow to A$9.5 trillion by 2035.

The reason behind the size of the Australian pension pool is the compulsory superannuation system introduced by the Australian Federal Government in 1992. The sheer weight of this pool, where a large percentage is mandated to invest directly in ASX-listed securities, makes the Australian market an attractive venue for international companies looking to access capital for growth.

Why the ASX?

In addition to capital, an ASX listing offers a number of other benefits for an international company looking at global public markets. These include a highly active exchange, a main board listing and earlier entry to globally recognised indices.

The ASX is a very active exchange, typically exceeding 120 initial public offerings (IPOs) a year and trading volumes averaging $5.6 billion on a daily basis.

The ASX’s main board listing, provides a globally recognised robust regulatory environment and access to the full breadth of investors from retail to global institutions. Access to the main board for earlier-stage growth companies is in contrast to a junior board listing, typical in other jurisdictions, where full access to the investor base can be more limited.

Often, institutional investor mandates stipulate fund managers limit their investment to a globally recognised exchange and not extend to many secondary boards or smaller main boards, examples of which are the AIM market in the UK, TSX-V in Canada, GEM in Hong Kong and Catalist in Singapore.

Index inclusion is another key factor. ASX has two globally recognised S&P indices, the S&P/ASX 300 and S&P/ASX 200. The importance of index inclusion to a listed company is the access this provides to institutional investment, both passive and active.

Institutional mandates are typically mandated to a recognised index and when a company enters an index it will lead to extended investment reach, both domestic and global, as that index weight increases.

The institutional investment in the S&P/ASX 200 index is comprised of about 45 per cent from global asset managers and 55 per cent Australian, meaning companies listed on ASX can have a register of globally recognised investors at an earlier stage than other markets.

Achieving global reach.

In the past five years there has been an increase in the number of international companies listing on ASX. It is an attractive listing venue for international companies from a number of different markets but these can be broadly characterised by (i) companies located in a constrained home capital market and (ii) those where size can cause them to be lost in their home market.

Getting lost in your home market.

In contrast, companies from large capital markets such as the United States also benefit from the Australian market dynamics. The size of the US public markets means that earlier-stage companies, with annual revenues below US$100 million or valued at US$1 billion market capitalisation or less, struggle to foster investor attention.

The US private markets are the most active globally and feature high-profile companies such as Uber, Spotify and Airbnb who have held off listing until they are well beyond that size. As a result, there is a whole generation of companies that would prefer to access the public markets, versus private funding, at an earlier stage, but their home exchange cannot support this.

ASX is bridging the gap for companies in these larger markets who would like to use the public markets to raise growth capital and can use ASX as a springboard to reach a size where they would attract attention in their home market.

There are currently 47 US companies listed on ASX. The US cohort of companies range across industries but the recent trend has been in the software and technology sector.

Why are technology companies listing on the ASX?

Technology is the fastest growing sector on the ASX.

Numerous growth-stage technology companies from Australia, the Asia-pacific, the US, Europe and Israel are successfully listing on the ASX with good valuations and traction for scale. These listings illustrate a clear trend which has emerged, that is the ASX is increasingly being used by technology companies as either a stepping stone to a future dual listing on other exchanges or as a long-term listing venue.

Many young technology companies are listed on ASX. Usually, in the US and other major markets, such young companies are considered as mid-stage or late-stage pre-IPO growth firms, and they seek venture capital as Series B, Series C, Series D, etc.

However, in Australia, retail investors accept investing in high-risk young firms that are still figuring-out their growth-model.

The key advantage for investors is that growth in the ASX technology sector, in both domestic and foreign companies, expands the universe of available investing options.

The ASX – A baby Nasdaq.

The ASX is targeting smaller tech companies that would not be able to list on the Nasdaq.

The ASX is positioning itself as a late-stage venture capital funding market with companies that have de-risked their model, have proven their revenue and are looking to scale their businesses and potentially go public to provide liquidity for their shareholders and acquisition currency.

Final Thoughts.

If a company is considering an IPO it will have recognised that it is one of the most important capital markets and wealth creation event in its’ corporate life cycle. That recognition should have extended to all of the factors that will influence the likely success of an IPO. Listing location should be high on that list of factors when formulating an IPO strategy. BlueMount Capital are experts in developing appropriate strategies and facilitating an IPO listing, particularly in Australia. BlueMount would welcome discussing with you how the capital raising opportunity which Australia represents can add value to your listing potential.
Data illustrating the ASX opportunity.

Technology valuations on the ASX.

Examples of US technology companies listed on ASX

Top Ten Technology “Unicorns” on the ASX

About BlueMount Capital

BlueMount Capital specialises in bringing US companies to the ASX, and has an office in Los Angeles to service its American clients

Len McDowall                                                         Alex Chen

Managing Director                                                Director and USA representative

Level 32 200 George St                                                1055 W 7th, 33rd Floor, Penthouse

Sydney 2000 Australia                                                Los Angeles CA 90017 USA

Telephone +61 2 8277 4112                                         Telephone +1 212 470 6997

Email sydney@bluemountcapital.com                    Email losangeles@bluemountcapital.com

 

Healthcare and International Stock Exchange Listings for US companies

An IPO is often the most important capital markets and wealth creation event in your corporate life cycle. Unmatched access to capital at a lower cost is a clear benefit in favour of an IPO, along with corporate branding opportunities and a host of other benefits.

Your company should consider three things when choosing a listing location—the actual out-of-pocket costs for establishing and maintaining the listing, the effects on valuation and liquidity, and the nonfinancial benefits. (A fuller discussion of the pros and cons of listing on the Australian Securities Exchange (ASX) versus the Nasdaq or NYSE can be found in the second of this series of BlueMount Capital’s articles: “International Stock Exchange Listings for US Companies”.)

However, a US private company considering an IPO, with a value of less than US$1 billion is too small to list successfully in the USA these days.

IPOs in the United States typically have significantly high expenses. Legal and accounting fees, printing, brokerage charges to raise the capital, insurances, director fees and other related expenses are substantially higher than in many other countries.

Therefore, as a healthcare company, you should consider all of the relevant factors that all global Listing Exchanges’ offer before committing to what might appear to be the most obvious or easiest IPO route. Are you ready to engage in such considerations?

Why are healthcare companies listing on the ASX?

Are you aware that Australia has a strong healthcare, biotech and med-tech ecosystem with world-class healthcare companies, research facilities and informed investors? This Listing Exchange profile allows companies listing on the ASX to raise capital for both commercialisation and future growth.

With over sixty-five healthcare listings since 2013, the ASX also provides a unique platform to join an impressive peer group of both emerging and mature companies, across pharmaceuticals, medical technology, biotechnology, digital health, medical practice and pathology operations.

The ASX now has sixteen listed healthcare unicorns. In total there are 170 plus healthcare, biotech & med-tech companies listed on ASX with a combined market capitalisation of over A$248 billion.

With numerous growth-stage healthcare companies from Australia, Asia-pacific, the US and Europe successfully listing on the ASX with good valuations and traction for scale, a clear trend has emerged, the ASX is increasingly being used by healthcare companies as either a stepping stone to a future dual-listing on other exchanges or as a long-term listing venue. (A sample of examples of ASX Unicorns is provided in the table below.)

Many young healthcare companies are listed on the ASX. Usually, in the US and other major markets, such young  companies are considered as mid-stage or late-stage pre-IPO growth firms, and they seek venture capital as Series B, Series C, Series D, etc.

However, in Australia, you may be surprised to learn that retail investors accept investing in high-risk young firms that are still figuring out their growth-model. The key advantage for investors is that growth in the ASX healthcare sector, in both domestic and foreign companies, expands the universe of available investment options, which in-turn creates a significant opportunity for healthcare companies like yours!

Observations based upon Healthcare Valuations on the ASX

When comparing the ASX with alternative global listing opportunities for healthcare sector companies, with between $50m and $1bn capitalisation, it is clear that the ASX is second only to the New York based exchanges in terms of the number of companies listing. However, both US exchanges have been trading far longer than the ASX and therefore have a large number are legacy listings. Moreover, these US Exchanges have experienced declining listing numbers and significant increases in qualifying listing valuations over the past ten years.

In the table above, you can see that the Nasdaq and NYSE have far higher median liquidity velocity ratios than the rest of the Exchanges for both larger and smaller healthcare stocks. The ASX is not the leader in terms of the other global Exchanges for small healthcare stocks, it is third behind Singapore and Toronto Stock Exchange, but for larger companies it is the leading Exchange based upon liquidity velocity. Market liquidity is important to your choice of Listing Exchange for a number of reasons, but primarily because it impacts how quickly you can open and close positions. In a liquid market, a seller will quickly find a buyer without having to cut the price of the asset to make it attractive.

Where the ASX outperforms all other exchanges, is in Median EV/Sales and Median P/S multiples where it is the most favourably priced compared to all the other exchanges for smaller healthcare companies

(Enterprise value-to-sales (EV/sales) is a financial ratio that measures how much it would cost to purchase a company’s value in terms of its sales. A lower EV/sales multiple indicates that a company is more attractive investment as it may be relatively undervalued.)

(The price-to-sales (P/S) ratio is a valuation ratio that compares a company’s stock price to its revenues. It is an indicator of the value that financial markets have placed on each dollar of a company’s sales or revenues.)

Looking at the number of companies listed on each of the exchanges and comparing small to large healthcare companies, we can see the ASX is second largest for small, but tied in fourth place for larger capital raises.

From these figures, which lack a longitudinal dimension. it is hard to deduce that the ASX accommodates smaller company listings than larger ones. However, it is clear that the median market value of healthcare listed companies is lower.

In this regard it is clear that one of the ASX’s advantages over listing alternatives is the comparatively low level of market capitalisation required to list. Moreover, the comparatively high level of capitalisation, which it appears to be necessary to list on the Nasdaq, should suggest that for companies with comparatively low levels of capitalisation listing on the Nasdaq may prove difficult.

Final Thoughts

It is evident that the choice of global Listing Exchange, for your healthcare company when considering an IPO, is more complex than is first evident. Understanding how the performance of each Exchange may compliment, or not, the IPO profile of your company requires the appreciation of many factors if your company is to maximise its IPO opportunities. Therefore, if you are considering an IPO, why not contact BlueMount Capital and let them use their expertise to assist you in making the right Listing Exchange decision?

About BlueMount Capital

BlueMount Capital specialises in bringing US companies to the ASX, and has an office in Los Angeles to service its American clients

Len McDowall
Managing Director
Level 32 200 George St
Sydney 2000 Australia
Telephone: +61 2 8277 4112

or

Alex Chen
Director, and USA Representative
Penthouse 1055 W 7th, 33rd Floor,
Los Angeles CA 90017 USA
Telephone: +1 212 470 6997

International Stock Exchange Listing – Alternatives for US companies

In the past five years there has been a marked increase in the number of international companies listing on the Australian Securities Exchange (ASX). Why is this happening? What are the thought processes and market dynamics that attracted these companies to list on the ASX? Where these companies are U.S. based, what were the factors that stimulated them to look outside their home capital markets? Are the experiences of these companies relevant to your own capital raising considerations?

Is Australia attractive to overseas IPO listings?

With numerous growth-stage companies from the US successfully listing on the ASX with good valuations and traction for scale, a clear trend has emerged. The ASX is increasingly being used by growth-stage companies as either a stepping stone to a future dual listing on other exchanges or as a long-term listing venue.

As of November, 2020, there were over two hundred and seventy foreign companies listed on the ASX. Of these, forty-seven were US based companies, the second largest international pool of listing companies behind New Zealand. The US cohort of companies range across industries but the recent trend has been in the technology sector. The ASX-listed tech sector has more than doubled in the past five years and continues to be Australia’s fastest-growing sector in terms of new listings. The ASX saw one hundred and six new listings in 2018, one hundred and twenty-three in 2017, compared with one hundred and eight new listings in 2016 and one hundred and nine in 2015. The percentage of foreign IPOs on the ASX has been growing steadily from around two point five per cent in 2008 to around twenty-five per cent in 2016, 2017 and 2018.

Good examples of US companies listing in Australia include:

These figures may not tell the whole truth. The ASX uses a sector classification, which employs a relatively narrow definition for technology, meaning that there are also ‘tech’ companies in other sectors. For example, there are approximately forty fintech companies listed on ASX, many of which fall in the financial sector classification. For example, of the forty-six American companies who have listed and raised capital on the ASX. Many, including the likes of Resmed (RMD) (medtech), , Revasum (semiconductors) and Livetiles (software) are technology-driven companies but are classified in sectors other than technology.

In fact, the ASX, in partnership with S&P Dow Jones Indices (S&PDJI), in February of 2020, launched the S&P/ASX All Technology Index (All Tech Index). The new index captures ASX-listed companies in the fast-growing technology sector. The All Tech Index operates under an S&PDJI methodology and at launch will have forty-six constituents with a combined market capitalisation of over $100 billion. In total, there are more than 200 listed technology companies listed on the ASX valued at almost $115 billion. This initiative has reinforced the perception of the ASX as the Junior NASDAQ.

What is driving this trend?

Has Australia, and the ASX in particular, features that are comparatively attractive to US companies or is the case that the US capital market has a number of unattractive features that drives them to look outside their home turf?

Many early stage companies are listed on the ASX. Usually, in the US and other major markets, such young companies are considered as mid-stage or late-stage pre-IPO growth firms, and they seek venture capital as Series B, Series C, Series D, etc.

Size matters. A 2002 study of the reasons US companies list abroad concluded that the primary factor was the size of the company. Companies with revenue of less than US$100 million can attract public market capital in Australia whereas for US companies of this size the only alternatives available are private equity markets with all of their associated pitfalls. The importance of size suggests that the cross-listing decision involves non-negligible fixed costs and economies of scale, this is consistent with the findings of studies of the decision to list in domestic markets,
In addition to size, being a newly privatized company also increases the probability of cross-listing both in Europe and in the United States. This is consistent with the hypothesis that cross-listing is particularly advantageous for firms that need to sell a large number of their shares. In this regard the Australian “sweet-spot” is for global companies with market caps of between A$100 million and A$1 billion.

Within this Australian sweet-spot band of investable company size, antipodean retail investors accept investing in high-risk young firms that are still figuring out their growth-model. The key advantage for investors is that growth companies listed on the ASX, expands the universe of available investing options. In particular, the ASX is a great environment for attracting the attention of media, stock analysts and investors.

Australia’s large fast -growing pension pool, main board listing and earlier entry to globally recognised indices makes ASX the exchange of choice for international companies.

Australia has the fourth largest pension pool globally and also one of the fastest growing. The pool of superannuation (pension) assets is disproportionately large compared to Australia’s population. Superannuation assets currently total A$2.6 trillion and is forecast to grow to over A$10 trillion by the mid-2030s. A significant proportion of this is, and will be invested in ASX listed stocks.

The reason behind the size of the Australian pension pool is the compulsory superannuation system introduced by the Australian Federal Government in 1992. Employers contribute towards superannuation funds on behalf of their employees for their retirement. The current rate is 9.5% with a planned increase to 12% by 2025. Due to the superannuation funds’ structure, much of the capital is invested in Australian listed stocks and companies, making for a very fertile investment ecosystem.

The sheer weight of this pool, where a large percentage is mandated to invest directly in ASX-listed securities, makes the Australian market an attractive venue for international companies looking to access growth capital.

Why List on the Australian Stock Exchange (ASX)?

In addition to capital, an ASX listing offers a number of other benefits for an international company looking at global public markets. These include a highly active exchange, a main board listing and earlier entry to globally recognised indices. Australia is an attractive listing venue for international companies from a number of different markets but these can be broadly characterised by (i) companies located in a constrained home capital market and (ii) those where size can cause them to be lost in their home market.

Companies from large capital markets, such as the United States, also benefit from the Australian market dynamics. The size of the US public markets means that earlier-stage companies, with annual revenues below US$100 million or valued at US$1 billion market capitalisation or less, struggle to foster investor attention.

The US private markets are the most active globally and high-profile companies such as Uber, Spotify and Airbnb have held off listing until they are well beyond that size. This means there is a whole generation of companies that would prefer to access the public markets, versus private funding, at an earlier stage, but their home exchange cannot support this.

ASX is bridging the gap for companies in these larger markets that would like to use the public markets to raise growth capital and can use ASX as a springboard to reach a size where they would attract attention in their home market.

ASX is a very active exchange, typically exceeding 120 initial public offerings (IPOs) a year and trading volumes averaging $5.6 billion on a daily basis.

ASX offers a main board listing, which provides a globally recognised robust regulatory environment and access to the full breadth of investors from retail to global institutions. Access to the main board for earlier-stage growth companies is in contrast to a junior board listing where full access to the investor base can be more limited.

Often, institutional investor mandates stipulate fund managers limit their investment to a globally recognised exchange and not extend to many secondary boards or smaller main boards, examples of which are the AIM market in the UK, TSX-V in Canada, GEM in Hong Kong and Catalist in Singapore.

Index inclusion is another key factor. ASX has three globally recognised S&P indices, the S&P/ASX 300, S&P/ASX 200 and the new S&P/ASX All Technology Index. The importance of index inclusion to a listed company is the access this provides to institutional investment, both passive and active.

Institutional mandates are typically mandated to a recognised index and when a company enters an index it will lead to extended investment reach, both domestic and global, as that index weight increases.

For example, institutional investment in the S&P/ASX 200 index comprises of about forty-five per cent from global asset managers and fifty-five per cent from Australian, meaning companies listed on ASX can have a register of globally recognised investors at an earlier stage than other markets.

What will your next step be?

Australia, and in particular the ASX, has many features that can generate benefits to companies considering and an IPO. BlueMount Capital specialises in bringing US companies to the ASX, and has an office in Los Angeles to service its American clients. Why not contact us and evaluate what we can add to your IPO considerations?

(For further discussion of the reasons listing in the US market may prove unattractive to a company see the first in the series of BlueMount Capital publications, “IPO in the United States? Remember, size matters!”)

Len McDowall
Managing Director
Level 32 200 George St
Sydney 2000 Australia
Telephone +61 2 8277 4112
Email sydney@bluemountcapital.com

Alex Chen
Director and USA representative
1055 W 7th, 33rd Floor, Penthouse
Los Angeles CA 90017 USA
Telephone +1 212 470 6997
Email losangeles@bluemountcapital.com

IPO in the United States? Remember, size matters!

Is your company large enough to IPO in the United States (U.S.)?

You know that when choosing a listing location three things should be considered

(1) the actual out-of-pocket costs for establishing and maintaining the listing;

(2) the effects of a listing location on your company’s valuation and liquidity; and

(3) the non-financial costs and benefits that are available in a particular listing location.

Given that an IPO will often be the most important capital markets and wealth creation event in your corporate life-cycle these considerations should be evaluated very carefully. Unmatched access to capital at a lower cost is a clear benefit of an IPO, along with corporate branding opportunities and a host of other benefits. However, these benefits become insignificant when the analysis that underpins your choice of listing jurisdiction is flawed.

IPOs in the U.S. typically cost significantly more than in other jurisdictions. Legal and accounting fees, printing, brokerage charges to raise the capital, insurances, director fees and other related expenses will be substantially higher in the U.S. than in many other countries. Therefore, it is highly advisable to ensure that a full cost analysis of an IPO listing, in a particular jurisdiction, is completed and then compared with other locations. Our analysis would suggest that the costs and burdens of a U.S. IPO substantially exceed those of other countries.

Have you appreciated the full costs and benefits, including the intangibles, of a U.S. IPO listing as compared with other listing jurisdictions?

The New York Stock Exchange (NYSE) and NASDAQ are the most prestigious stock markets in the world and therefore represent obvious listing targets. However, the competitiveness of the U.S. public markets has been seriously challenged in recent years * in particular:

  • the valuation of U.S. IPOs has increased by more than six times – this significantly increases the valuation threshold you need to reach for the U.S. to be an IPO capital raising option;
  • the age of companies at the time of a U.S. IPO has increased from approximately six-point-five to ten-point-five years – this reflects the length of time companies require to reach an increasingly higher IPO valuation threshold; and
  • the annual number of U.S. IPOs has decreased from approximately 400 to 100 – this is a good indicator of the impact of the rising valuation threshold.

*Source: Dealogic Capital Markets/Capmktsreg.org

So, the U.S. market represents an increasingly shrinking opportunity for the smaller company seeking to IPO. Do you have a valuation greater than U.S one billion dollars? You don’t, then what are your alternatives?

Private equity is the next obvious choice however this is not necessarily the best alternative by which to grow a private company. Private equity funds tend to place lower valuations on their investee companies than the IPO marketplace. They also often impose shorter exit horizons. Moreover, because private equity investors can have different objectives from the founders of investee companies, there is a real possibility of founders losing control of their company. Were you aware that raising capital from the private equity market comes with some significant downside consequences?

Is raising capital from private equity markets really an attractive option for your company?

Because the presence of a strong IPO market permits founders and other entrepreneurs to retain control of a public company post an IPO, and to grow the company with less dilutive public equity, an IPO is still your most attractive route to investment capital. Unfortunately, this choice is increasingly unavailable to smaller companies.
Why is this the case? Underwriters are increasingly uninterested in comparatively smaller capital raises because:

  • many large institutional investors will not consider investments in companies having small post-IPO market valuations;
  • it becomes much more difficult to obtain coverage of the stock by securities analysts when post-IPO market valuations are projected to be low. As a result, there is a very real risk that these stocks will be deemed so-called orphan stocks (i.e. not followed by any securities analysts); and
  • smaller private companies planning an IPO typically have a higher risk threshold than larger companies in a similar position. Accordingly, smaller private companies are more frequently rejected by the largest most prestigious accounting firms for U.S. IPOs.

Therefore, if you are a U.S. private company considering an IPO, with a value of less than US$1 billion you are very likely to be considered to be too small to list successfully in the USA these days. Furthermore, the costs of funding such an IPO listing are simply uneconomic in the USA.

What are your alternatives?

With no easily accessible IPO market in the United States for smaller companies those U.S. private companies wishing to obtain growth capital are forced to seek private equity financing with all of its associated potential pitfalls.

There are however alternatives for US companies, who have a valuation of less than U.S. one billion dollars, wishing to go public, and are prepared to consider jurisdictions outside of the USA. These locations secure the benefits of an IPO capital raising strategy, importantly, with significantly lower costs. The two most promising jurisdictions are the self-contained regions of Europe and Asia-Pacific. In particular, within the high growth Asia-Pacific region, Australia represents an extremely popular choice.

Have you considered these alternative listing jurisdictions? What does your listing cost analysis of alternative listing jurisdictions tell you? Have you discussed your listing options with expert sources who can provide you with a balanced picture of the alternatives available to you? A well-developed business case building exercise should quickly identify that your company size does matter. Moreover, it matters more in some regions of the capital raising world than in others. Your size therefore will be a major influence in determining your IPO strategy including listing location.

About BlueMount Capital

BlueMount Capital specialises in bringing US companies to the ASX, and has an office in Los Angeles to service its American clients

For further information please contact;

Len McDowall
Managing Director
Level 32 200 George St
Sydney 2000 Australia
Telephone +61 2 8277 4112
email sydney@bluemountcapital.com

Alex Chen
Director and USA representative
1055 W 7th, 33rd Floor, Penthouse
Los Angeles CA 90017 USA
Telephone +1 212 470 6997
email losangeles@bluemountcapital.com

BlueMount Capital Opens Los Angeles USA Office – Focus on Listing US Tech Firms on ASX

Sydney, Australia. BlueMount Capital, an ASIC licensed, mid-tier, global investment banking and corporate advisory group headquartered in Australia has today opened an office in Los Angeles and appointed Alex Chen as our representative there.

Alex has over 25 years’ experience in the financial services sector. He has served as CFO for both public and private companies in Australia, Hong Kong, China and the United States and as CEO across a wide spectrum of industries. He specializes in the Pacific Region with a focus in USA IPO’s, where he has significant experience. He is a CPA with a Bachelor of Commerce from Victoria University in Australia and is licensed as a USA investment banker. Alex is bilingual and fluent in English and Mandarin.

The Los Angeles office will specialise in bringing USA companies to list on the ASX.

The ASX offers a very good alternative for USA companies looking to publicly list, as listing in the USA has become difficult for small-medium sized companies as the USA market increasingly favours large-very large companies.

More than 40 US companies have successfully listed on the ASX.

About BlueMount Capital

BlueMount Capital Group is an ASIC licensed, mid-tier, global investment banking and corporate advisory group headquartered in Australia. BlueMount’s team members are highly skilled professionals with global experience and a proven track record in equity and debt financings, M&A, Divestments, MBOs and MBIs, IPOs and RTOs and Cross Border transactions. BlueMount’s key areas of differentiation are its international market connectivity and the ability to perform a broad range of corporate advisory services. Its on- the ground representation in China, North America and Europe give clients the reach of major corporate finance houses with the service, feel and costs of a mid-tier group.

For more details contact:

Alex Chen
alex.chen@bluemountcapital.com
+1 212 470 6997

Len McDowall
len.mcdowall@bluemountcapital.com
+61 418 673 066

BlueMount Capital Group Update on COVID-19

The BlueMount Capital Group advises, in conjunction with the unfolding national and international responses to contain the spread of the virus SARS-CoV-2 and COVID-19 disease, many of our Directors and staff have responsibly chosen to work remotely.

While the current circumstances are unprecedented and likely to remain so for the foreseeable future, the BlueMount Capital Group will continue to provide you with our high level of services in accordance with your requirements. Our remote working procedures will ensure our quality, responsiveness and confidentiality are key priorities. We will also implement procedures to replace face-to-face meetings with teleconferencing and videoconferencing, and in particular, will comply with Federal and State government-imposed requirements.

These steps have been taken to adjust our business in the interests of the health and safety of our people, clients, guests and the general community and to play our part in the efforts to limit the spread of the virus/disease. We know many businesses will also be adjusting their work practices.

We are thankful and appreciative we can continue to operate our business of providing expert investment banking and corporate advisory services, albeit, with some operational adjustments.

Please continue to communicate with us by phone or email or other means in the usual way and let us know if you want to clarify any aspects of our business continuity arrangements.

We are conscious the current circumstances are presenting challenges for all our clients’ businesses.

We remain available to assist you to navigate any issues that arise.

The responses of the Australian and international governments to the spread of SARS-CoV-2 virus and COVID-19 disease are ongoing and changing. We will carefully monitor the situation and update you appropriately.

Social Islami Bank Limited engages Australia-based BlueMount Capital for issuing an international sukuk

Social Islami Bank Limited and Australia based Investment Bank BlueMount Capital signed a Mandate Agreement on 15th March 2020 at the Head Office of SIBL. Under the scope of the Agreement, BlueMount Capital will act as the International Lead Manager in placing an international sukuk for USD 75 million for SIBL within the regulatory framework of Bangladesh. Mr. Quazi Osman Ali, Managing Director & CEO, and other high officials from SlBL were present at the signing ceremony. Local representatives of BlueMount Capital exchanged the Agreement on behalf of their organization.

BlueMount Capital is the International Lead Manager for the issuance of a US$75 million Sukuk by Social Islami Bank Limited (“SIBL” or the “Bank”) in international markets.

The funds raised under the Sukuk will be used by SIBL to comply with the capital adequacy requirements of Basel III and for working capital purposes.

About Social Islami Bank Limited

SIBL is a commercial bank in Bangladesh listed on the Dhaka Stock Exchange. The Bank was founded in 1995 and operates on Shariah Principles. SIBL has more than 3,300 employees and operates 161 branches and 27 sub-branches that are complemented by 115 Agent Banking outlets. The Bank’s mission is to become the Country’s most humanitarian, full-service bank that builds solid, long term business relationships with its customers and helps them with their banking needs. The Bank’s social and economic objectives are to create a caring society and to help eradicate poverty and to empower families.

SIBL has experienced good growth in business with deposits increasing from US$527.7 million in 2010 to $2.92 billion in 2018, whilst investments grew from $431.5 million to $2.8 billion over the same time. The business growth is reflected in growth in operating profits and net profit after tax. The Bank has a Moody’s credit rating of Long Term B1 and Short-Term NP, Stable.

BlueMount Capital appointed Lead Manager for the proposed Sun Property Group Australia Limited’s IPO on the Australian Securities Exchange

BlueMount Capital is pleased to advise that we have been appointed Lead Manager for Sun Property Group Australia Limited, to list the Company on the Australian Securities Exchange (ASX) via an IPO aimed at mid-2020.

Founded in 2013, Sun Property is an Australian boutique property development company with a focus on developing high-end, small-scale, customer-driven residential and mixed-use spaces across Sydney’s Lower North Shore. Sun Property’s developments are recognisable for their individualised architectural design, high-end finishes and flexible spaces that are designed to a unique extent around the individual specifications of customers.

Sun Property has successfully completed 4 developments and is currently engaged in 4 projects at Neutral Bay, Balgowlah, Lane Cove and Crows Nest, which are in various stages of development.

Sun Property plans to identify further property development projects around Sydney’s Lower North Shore, one of the most sought after premium locations in Sydney. At the same time, it will carefully consider the merits of pursuing opportunities in other areas with profiles equivalent to Sydney’s Lower North Shore.

For more information please email our Sydney office at sydney@bluemountcapital.com

BlueMount Capital appointed Lead Manager for TrekAce Technologies Ltd’s IPO on the Australian Securities Exchange

BlueMount Capital is pleased to advise that we have been appointed Lead Manager for TrekAce Technologies Ltd of Israel, to list the Company on the Australian Securities Exchange (ASX) via an IPO aimed at late 2019.

TrekAce Technologies’ patented technologies give militaries, athletes, gamers and adventurers wearable devices and applications that facilitate tactile communication. Its six-pointed wriststrap navigator directs the wearer in real time, with vibration and sound notifications. It includes a screen that displays various metrics including temperature, azimuth, direction, elevation, route, and speed. The device connects to the wearer’s smartphone with Bluetooth Low Energy (BLE).

The technology offers navigation and group-management apps, as well as a structured API for third-party developers. The API enables them to implement tactile functionalities in their app UXs, making apps relevant and applicable to fields they presently fail to address (e.g. gaming, biometrics, navigation, sports performance, messaging, and C2). The Company provides militaries a complete & unique tactile solution for navigation and situational awareness.

TrekAce Technologies is currently generating revenues and profits, and it is expected that sales will be significantly grown by the time of the IPO.

For more information please email our Sydney office at sydney@bluemountcapital.com

Go Geo And RDA South West Investment Framework Partnership

The private and public sectors are coming together to boost investment in South West Western Australia

Regional Development Australia – South West Chairman Duncan Anderson announced that Go Geo Ltd and RDA SW will work together to produce a South West Regional Investment Framework.

Go Geo, alongside BlueMount Capital, are establishing the South West Managed Investment Fund. BlueMount is a member of the International Association of Investment Bankers, and the new fund will be a cornerstone investor in qualified companies and projects that have a positive impact on the region’s economy.

Mr Anderson said: “We have been grappling with how to bring the South West Blueprint to life. The federal government and the state government have already done the heavy lifting, we now need to embrace and support private funds”

In partnership with Go Geo, RDA South West are developing a regional investment framework. That framework is designed to bridge the gap between government planning priorities and the world of private equity.

The framework is determined in alignment with the Blueprint. Priority opportunities will be determined by an advisory group of initiators providing expertise in industry and sub sectors as required.

General Manager of Go Geo, Emma Nesbitt said: “The need for this framework came out of a growing interest, for businesses and industry to invest in both new and existing projects. This provides the vehicle.”

Mr Anderson said: “It’s a marvellous opportunity for our region. There are not many regions nationally that successfully bridge the gap between private and public planning.”

By using a framework that operates at the public and private level, the region can take best advantage of its opportunities and nurture some excitement.

Ms Nesbitt said: “In order to entertain the idea of external equity entering our region, and to facilitate such discussions, we need to ensure due diligence and sound governance. Through this process and the framework, we enable the region to retain control over planning measures whilst using progressive and modern influences to entice excitement, development and funding, which in turn broadens external markets and creates new jobs.”

The next step is the establishment of an independent body to oversee the investment fund, which will come to fruition over the coming few weeks.

Media contact: Emma Nesbitt. e: emma@gogeo.com.au m: 0406 056 926.

Media contact: Charles Jenkinson e: eo@rdasouthwest.com.au m: 0434 641 111