TECH ENTREPRENEURS SHARE THEIR KEY LESSONS ON LISTING ON THE ASX: PART 1
Written on the 13 October 2017
IT is a key question which is asked by scale-up businesses looking to move to the next level - should we list on the ASX, or do we remain private and retain control of our own destiny?
Peter Holton (pictured above), Managing Director of Spectur Limited (ASX: SP3)
"You have to be prepared for all of the extra work. Be aware of this ahead of time and bring in extra help before you start the process. That might be in the form of a few extra staff to take over some of your roles in the company. You might also want to have some professional advisors who aren't materially involved in the listing processes to mentor you through the process."
It's all very legalistic and very complicated. We were extremely fortunate with our lead brokers, Alto Capital. They were super supportive through the process. Without them the process would have been even more difficult. The new board and company secretary were also a huge help. Having someone on your board with ASX experience is a very important consideration. Once listed you are working in a highly controlled environment with very strict compliance requirements so that's something to be aware of too.
"The greatest challenge facing those of us at the junior end of the market or those considering joining us at that end of the Aussie bourse is pushing through depressed investor expectations and the reduced confidence that some of our predecessors have left in their wake."
Prominent Aussie investors and the new (and one or two not-so-new) local VCs take every opportunity to be critical of young companies that seek to list on the ASX, but in fact for those with promising or strong early-stage businesses, and a willingness to communicate and respect investors, there are tremendous benefits to an ASX listing.
"Everything is out to bare. The things you do as a private company compared to how you run a public company is vastly different so the scrutiny on everything was daunting."
My tip would be to ensure you have strong broker coverage on day one as well as a very strong pipeline of potential good news stories lined up.
Business News Australia