Here’s why Bailador reckons its SiteMinder investment is about to pay off, big time
Hotel booking platform SiteMinder is set to list on the ASX before the year is out and major shareholder Bailador (ASX:BTI) just gave its shareholders a clue of how much it would reap.
Bailador is an ASX investment company that invests in tech companies. It first bought into SiteMinder in 2012, chipping in $5 million.
It has chipped more money in since then, most recently in early 2020, and according to Bailador, SiteMinder is now set to list on the ASX before the year is out.
SiteMinder was valued over $1 billion, making it a unicorn early in 2020 and the AFR reported last month it kept this value despite the decimation of the travel industry.
Bailador told shareholders yesterday it would be selling a minority portion ($15.1 million) in SiteMinder at its IPO but would still retain a stake worth $84.6 million and escrow its remaining holding until at least the release of SiteMinder’s FY22 results.
SiteMinder’s IPO valuation represents an IRR of 44% and multiple of investment cost of nearly 23 times its original investment.
It is also backed by Fidelity, Ellerston Capital, Pendal, BlackRock and Washington H. Soul Pattinson.
“SiteMinder is an Australian tech success story. With a world leading platform, a truly global addressable market and an A+ grade management team, SiteMinder is exactly the sort of business that we are proud to have as a cornerstone for our portfolio and to continue to support,” said Bailador boss Paul Wilson.
Bailador’s own ASX IPO was in late 2014 and it listed at $1 per share. It is currently over 70% higher than its IPO price – a record since its listing.
In the event SiteMinder completed an ASX IPO it wouldn’t be Bailador’s first ASX holding.
Bailador’s other holding is Straker Translations (ASX:STG) which provides technology-driven translation services.
It has a 13.57% stake which it last topped up in June, buying another $5.2 million in shares. Its stake comprises of over 9 million shares worth over $15 million.
Some of its famous investments off markets included fintech mortgage broker Lendi. Bailador exited Lendi this year following the latter’s merger with Aussie, netting over $13 million in cash realisation.
Another company it still holds is data platform Instaclustr. Its stake is currently at $44.3 million making it Bailador’s second largest holding behind SiteMinder.