Irish insurance-claims software stock Fineos has debuted on the ASX today and has gained 7 per cent.
Fineos sold shares at $2.50 and within 15 minutes of commencing trading it sat at $2.69 – 8 per cent higher. It helps process life, accident and health insurance claims on a single platform accessible by all people involved in the claim.
Michael Kelly founded Fineos in 1993 as a consulting business. Since entering software in the mid-2000s it quickly expanded and is now used by 48 clients in eight countries. It is the largest foreign tech listing on the ASX after surpassing Silicon Valley life tracking app Life360 (ASX: 360).
Its clients include the New Zealand Defence Force, CommInsure and Qinsure. It employs 650 people across eight different countries including 130 in Australia and New Zealand.
Fineos has raised $211 million and will use the funds to make its software more comprehensive and win more clients.
Kelly said: “We believe the time is right to raise new funds via this IPO to invest in accelerating our technology.”
“Fineos’ growth is expected to be driven by increased adoption of current modules and cross-selling new modules within the existing client base, new client acquisition and expanding its presence into key strategic market,” said chair Anne O’Driscoll.
The company is generating revenue, making €53.7 million in 2018 ($88 million) and expects €74 million ($121 million) in 2020. But it anticipates losses around €2 million ($3.3 million) in 2019 and 2020 despite a €600,000 profit ($984,000) in 2018.
Michael Kelly owns 62.9% of the company and the senior management 67.3%.
Another foreign tech listing
Fineos’ listing comes only three months after Life360’s listing and with congratulations from its local peers.
Kelly said he believed Australia was best due to his company’s market leadership in Australia and the Asia Pacific. 130 of its 650 staff are in Australia and New Zealand. Six of the 10 largest insurers in Australia use Fineos.
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An ASX spokesperson revealed to Stockhead that Fineos was proactively courted by the ASX, and this began two years ago as part of its strategy targeting foreign companies. The ASX’s interest is in companies with constrained local markets such as New Zealand, Israel and Singapore.
Yesterday the ASX reported a $492 million profit and noted the increasing number of foreign listings and technology companies as one of its many achievements in the past year.
The ASX recently visited the US to woo more tech firms to list at Bridge Street.