Plexure Group is firming up plans for an initial public offering, potentially shifting its primary listing across the ditch.
"As the company requires significant capital for its next phase of growth, investigations into a move to the ASX are based on capital availability and support for technology companies like Plexure," the mobile engagement software company said. It provided no further detail.
The market value of securities on the ASX is A$1.9 trillion ($2.04t) compared to the NZX's $200 billion.
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The stock, currently listed on the NZX, jumped on the news and was recently trading at $1.32, up 9.1 per cent.
Plexure said it may re-classify as an NZX foreign exempt listing, which would allow its shares to continue to be quoted on the NZX.
While not unusual for NZX-listed companies to seek an ASX listing, it's less common to shift the primary listing. There are currently 56 Kiwi companies either sole or dual-listing on the ASX and many have foreign exempt listings in Australia.
One company that moved its primary listing and keep a foreign exempt listing in New Zealand was Michael Hill International in 2016. The company, however, is domiciled in Australia, and was already reporting in Australian dollars when it made the shift.
Plexure said today it would remain headquartered in Auckland and domiciled in New Zealand.
An alternative would be to keep the primarily listing here and list as a foreign exempt entity in Australia, which effectively lets a company focus on compliance just with the NZX Listing Rules.
Recognising long term value
The company did not comment on why it was planning to go the other route.
"As an ASX listing is being investigated by Plexure, the Australian regulatory regime does not permit the company to add to what is included in the announcement," a spokesperson said.
Brad Gordon, an investment adviser at Hobson Wealth, said the company may be eyeing up the success of Xero, a company that shifted its listing to Australia and quit NZX entirely, and was recently trading at A$91.35. It closed at $34 when it last traded on the NZX in January 2018, having sold shares at $1 apiece in a 2007 initial public offering.
"I think with the success of Xero they believe that Australian investors are better at recognising long term value," Gordon said.
Any IPO and listing change would be subject to any required shareholder and regulatory approvals, Plexure said.
Plexure's software is used by brands like McDonalds, 7 Eleven, White Castle and Ikea to engage consumers on mobile devices and drive them to store with personalised offers, mobile order and pay and loyalty. It has more than 191 million end users in 60 countries.
In May it reported an annual net profit of $1 million up from a loss of $700,000 in the prior year and a 50 per cent jump in revenue to $25.3m.