Aconex IPO reportedly downsized but back on track for a December 2014 ASX listing.
Just a couple of weeks after postponing a planned Au$230m initial public offering (IPO) just 24 hours before it was due to publish its prospectus, Melbourne-based Software-as-a-Software construction collaboration technology vendor Aconex is (according to a report by Sally Rose in The Age; see also The Australian) to be back on track to float after a revised IPO secured $140 million from cornerstone investors. (17 November Update: Read also Aconex’s news release).
Joint lead managers Macquarie and UBS have now completed the institutional book-build for the re-engineered Aconex IPO, raising $140 million at $1.90 per share. Macquarie head of equity capital markets origination Mark Warburton explained:
“We had covered the book for a $230 million raising, but then the market came off, risk aversion was on the rise, investors were displaying a bit of IPO fatigue, and we wanted to make sure it traded well.
“The pipeline of technology companies coming to market is stronger than it has ever been. We are developing a really good local tech sector, but for that to work out this deal has to trade up.”
Macquarie and UBS returned to institutional investors that had supported the original Aconex IPO deal to cornerstone the new smaller, more competitively priced raise. An updated prospectus is expected to be lodged with the regulators shortly, with the listing slated for 9 December 2014. Aconex founders Leigh Jasper and Rob Phillpot were reportedly persuaded to give up $90 million in value so the float could be re-priced.
Sally Rose adds: “Aconex will be the biggest float of an unprofitable technology company in the history of the local market. At listing the company will have a market capitalisation of $312 million,” showing Australian investors are prepared to accept valuations based on revenue multiples, rather than the traditional emphasis on profit. A month ago, market talk was about an Aconex valuation between $350m and $410m.