In the just-released Deloitte 2015 IPO report, which was compiled in collaboration with market intelligence newswire Mergermarket – it was noted that a new wave of listings among smaller Australian tech companies is expected in 2015.
‘Small tech with big potential’ is the order of the day, with equity in the technology, media, and telecommunications (TMT) sector maintaining momentum. Indeed it raised $1.7bn in 2013 and 2014, with average share prices for 2011 through 2014 up at 12.9 per cent. Off the back of these gains, a bumper year is being forecast for the year ahead.
It was also noted in the aptly named ‘Surfs Up’ report, that alongside increasing investor interest in high-growth businesses with global potential, a raft of smaller Aussie companies are riding the wave of investor opportunity.
“The preparedness of the stock market to embrace young and sometimes less proven tech businesses gives a viable alternative to private businesses seeking venture funding,” the report read, citing the managing director of a Melbourne-based company that raises capital for technology and services businesses.
The report also made a special mention of digital applications group Rewardle – a small Aussie tech company which in 2014 was a standout deal given that as a young tech business with little revenue, it still managed to raise $4.0m.
As to the year ahead, Deloitte highlighted a ‘brewing interest’ in tech stocks and other emerging sectors with export potential, especially those outside the mining sector that offer investors a substantial return rate.