High-flying Updater wants to ditch the ASX and go private
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High-profile tech stock Updater has announced plans to delist from the ASX and go private to “pursue its next phase of growth in the United States”.
The Australian market has been kind to the online relocation service.
Updater’s shares (ASX:UPD) have rocketed 358 per cent since the $665 million company listed at the outset of 2016.
Updater provides a website that lets Americans moving house update all their details and utilities in one place. Updater makes money by on-selling that customer data to third-party services such as insurance providers.
Updater calls the concept “ReloTech” (relocation technology) in reference to similar segments such FinTech and RegTech.
One analyst put a price target of $2.40 on the company’s shares as its revenues continued to surge, hitting $5.1 million in the June quarter, more than double the previous quarter.
Updater aims to buy back shares at $1.25 each or the highest price at which Updater has raised capital on the ASX.
The shares moved 9 per cent higher to an intraday high of $1.30 before cooling to $1.19 just before midday.
The track record of Updater’s shares (ASX:UPD) since it listed at the start of 2016.As it moved into a trading halt this morning Updater said it would put a proposal to shareholders to approve a delisting from the ASX to focus on the United States.
The company has been contacted for comment.
“Numerous financial investors and strategic parties have expressed significant interest in an investment in Updater as a private company,” the business told investors.
The proposed buy-back would be funded with existing cash reserves.
“Our market penetration in the US has resulted in Updater emerging as a market leader in the multi-billion dollar US relocation technology market,” Updater founder David Greenberg said in a statement.
“Accordingly, we have received significant interest from a number of enthusiastic potential investors. The opportunity presented by this considerable investment interest makes delisting from the ASX a logical next step towards achieving our long-term vision for the Company.
“Updater’s Directors, including myself, are not selling any shares as part of the buy-back.”
The plan will be put to a vote at a shareholder meeting on September 7.
Updater was on track to “achieve all of its stated 2018 year-end goals, including total revenue in the range of $US19 million to $US23 million”.
More to come