NUIX listed on the ASX on 4 December 2020. The shares available at listing were taken up by select investors. The company’s market capitalisation was well in excess of $3 billion until Friday 26 February 2021. On that day its shares dropped in value by 32.44%. On Friday 21 May 2021 its share price closed at $3.53.
The company’s half year results (to December 2020) revealed negative revenue growth of -3.9% on the previous corresponding period. On an annualised basis contract revenue was trending at 3% growth.
A fall in revenue and massive loss in value for its IPO investors has put NUIX in the sites of class action lawyer Amanda Banton.
Nuix has informed the market that its ‘… performance and market position are strong. Nuix remains confident of its long-term prospects. Financial forecasts at the time of its IPO and subsequent updates have been thoroughly explained in the Company’s market disclosures, including Nuix’s IPO Prospects and recent trading updates highlighting post-IPO changes in customer preferences and shifts in industry conditions. The Prospectus was the subject of a thorough due diligence process involving leading law firms, internationally recognised accounting firms, and top tier financial and investment banking advisers.’
Class Actions are booming
According to AFR:
‘Vince Morabito of Monash University said the 69 claims filed from March 4, 2020 to March 3 this year was also the biggest number since the class actions regime commenced in March 1992.
However, he noted there were far fewer shareholder claims in 2020 and 2021 compared with previous years, which could be partly explained by temporary changes to the fault threshold and continuous disclosure laws.’