A private equity group that wanted to acquire PEXA has been shoved aside as momentum gains for an IPO.
The talk of PEXA’s value keeps increasing in increments of $1 billion. Original plans to list on the ASX, prior to its current ownership structure, were flagged at $1 billion. But then the current owners (Link Group, Commonwealth Bank of Australia and Morgan Stanley Infrastructure Partners) came in at around $1.6 billion.
The current consortium of Pacific Equity Partners, Carlyle Group and their affiliates have withdrawn after proposing an implied enterprise value of $1.95 billion. The new mark that is being hinted at is $3 billion – whether by an IPO or an obviously well-cashed up buyer.
Through its PEXA International business, PEXA is actively pursuing opportunities to introduce its experience and know-how to new markets, focusing on those with Torrens title systems, such as England, Wales, New Zealand and Canada, which still largely rely on paper-based property settlement systems or are making early progress towards digitisation.
Its move to expand globally is likely behind the latest billion dollar increment to its hypothetical enterprise value. As this hypothetical value keeps rising, the likelihood of a private buyer diminishes and an IPO looks more certain.