IPO Watch: Israeli tech company Way2VAT coming to the ASX next month

Way2VAT (ASX:W2V) is set to be the next tech company from Israel to list on the Australian bourse.

The company is scheduled to list on September 7 and provides claim and return solutions for Value Added Taxes (VATs).

Way2VAT owns and operates a patented AI-powered platform that can connect to a business’ existing expense management systems.

It analyses recoverable VAT and then automates the reclaim process – lodging the claim with the tax authority rather than leaving business owners to do it manually.

It has raised $30 million at 20 cents per share and its backers include billionaire businessman Alex Waislitz.

“Our platform is end to end for all the VAT reclaim process and we’re doing that in 40 different countries, in 20 languages, fully automated AI based and a few patents around that,” Way2VAT founder and CEO Amos Simantov said speaking with Stockhead.

“If you’re an international business with operations or suppliers abroad – all the VAT or GST to those invoices can be reclaimed automatically with our platform.

“Reclaiming VAT was complicated process for accounting departments working from home, therefore we provided our platform.”

Why Way2VAT is listing in Australia

Simantov says the ASX’s reputation in Israel as a hub for tech companies made it a no-brainer to list on the ASX.

“We started this journey two years ago, our idea was to look on markets that we can IPO – Tel Aviv wasn’t an option for us,” he told Stockhead.

“It’s a hub for many small-medium companies. We’ve been seeing companies like Splitit (ASX:SPT) list – the CEO is a friend of mine and he explained the process and benefits.

“We looked at alternatives but decided to go ahead because of the fintech hub, the opportunity in the Australia market, leverage and also our technology solution in that country.

“I’ve been [to Australia] many times; bear in mind we’ve lodged a prospectus in March 2020 so I’ve been there on a roadshow and meeting players, so I know the market inside out.”

As Simantov alluded to, Way2VAT first tried to list in early 2020 but withdrew the offer due to the COVID market crash that scared away would-be listees for some weeks.

But Simantov says his company is in a better position than 18 months ago, with more than double the number of clients as well as a recovery in the travel market in Europe – a key market for the company.

“We are quite busy, we’re seeing growth on monthly basis, people are restarting travelling mainly in Europe. I’ve travelled a few times to the UK and Europe [and] planes are packed,” he said.

Comparable companies

There are over a dozen other tech companies from Israel listed on the ASX although only one has listed since COVID-19 – Gefen (ASX:GFN), which is in the insuretech space.

Arguably the one that has drawn the most investor attention has been BNPL provider Splitit (ASX:SPT) and while it is more than double its IPO price, it is off its all time highs.

One comparable company from a sector perspective is 8common (ASX:8CO) which helps government departments and large corporates plan, book and monitor travel.

Travel provider Serko (ASX:SKO) also has a similar service.

This interview was edited for clarity.