IPO Watch: Macquarie-backed Keypath Education drops on ASX debut

Edtech company Keypath Education (ASX:KED) entered the ASX today but fell on debut.

It runs online university courses (predominantly post-graduate) through its technology and data platform KeypathEDGE and is partnered with 32 universities across Australia, North America, Britain and Malaysia.

In listing on the ASX it has become the bourse’s largest edtech stock.

The company is also notable as the first ASX IPO backed by Macquarie since controversial data forensics company Nuix (ASX:NXL).

Nuix begun listed life on a positive note but has dropped after multiple financial downgrades as well as several allegations about the governance of the company and forecasts made at listing.

Keypath raised $212.5 million at $3.71 per share but fell slightly by just over 4 per cent.

Keypath Education (ASX:KED) share price chart

Keypath in an “excellent position”

Keypath CEO Steve Fireng said his company was in “an excellent position to begin life as a listed company”.

“Keypath is an industry leader in delivering online programs in partnership with some of the world’s leading universities,” he said.

“Over the past seven years, we have grown to be one of the largest ed-tech companies in he online programs space globally.

“The successful completion of our IPO will help drive our growth in existing markets and our expansion into new markets. We are particularly excited about the growth opportunities within healthcare disciplines and South-East Asia.”

Despite the adoption of online education during COVID-19, the company told investors during its IPO that the best was yet to come – noting it was still just 2 per cent of the global higher education industry.

It is forecasting revenues in FY22 to be US$116.4 million ($150.3 million), which would be more than double the US$55.4 million ($71.53 million) made in FY20.