PEXA has confirmed that, following a cornerstone bookbuild process, it has signed an underwriting agreement for the purposes of a proposed initial public offering (IPO).
The underwritten price of the IPO implies an enterprise value for PEXA of $3.3 billion.
The proposed IPO has an expected ASX listing date towards the end of June 2021, subject to satisfying ASX admission requirements.
The Link Group Board unanimously concluded that retaining exposure to Link Group’s interest in PEXA, whilst also realising a transparent valuation through a listing and flexibility to monetise its interest over time, was in the best interests of shareholders.
The three shareholders prior to this were Morgan Stanley Infrastructure Partners, Link Group and Commonwealth Bank. Morgan Stanley is now the confirmed seller of its holding while Link Group and CBA will stay in and assess opportunities as shareholders of a public company.
$3.3 billion enterprise value is a notable amount for a company that looks to be doing around $250 million to $300 million in annual revenue. Future growth in revenue is expected to come from three initiatives:
1. PEXA International – developing digital property settlement solutions for offshore markets with Torrens lands title systems;
2. PEXA Insights – harnessing property data from the PEXA Exchange and other data sources to generate data-driven insights for property market participants and other stakeholders; and
3. PX Ventures – identifying, incubating and accelerating new business ventures with partners to provide solutions for consumers, businesses, and governments across the property sector.
Learn more about PX Ventures at https://pxventures.com.au
Growth in international markets looks to be the big ticket item.
According to PEXA, in England and Wales, it is working towards potentially launching an initial re-mortgaging solution in 2022.