US online technology firm Updater plans ASX IPO by Feb 2016 enroute Nasdaq

United States-based technology company Updater, the online platform that helps people cope with issues faced while shifting homes, will float an initial public offering on the ASX. It may list on the ASX by February 2016.

The online company was launched in 2010 and processes 26,000 moves per month and operates in the US$15 billion (AU$20.92 billion) industry. Its Australian debut follows the successful ASX listing of another U.S.-based online company, 1-Page, in October 2014.

Updater’s founding chief executive David Greenberg told the Australian Financial Review that his company decided to list on the ASX because it sees the move as the right pathway to a future listing on the Nasdaq. However, Updater will not be launching its product in the Australian market. The CEO said listing on the ASX will enable it to grow the public company and when it achieves a bigger market cap, it will move onto the Nasdaq.

“It was seeded by Australian investors about five years ago and the ASX has been in the back of my mind for a long time,” Greenberg said.

The company is valued at US$49 million [AU$68 million] and received the backing from a number of Australian venture capital funds and high-networth individuals, the report added.

Niche services

Updater operates in a niche market with its centralised service for people relocating and moving houses. It offers a bunch of services such as mail forwarding and updating addresses in different databases including mortgage companies. It also partners with real estate agents, mortgage brokers and property agents for providing the services to movers. Moelis & Co will be advising it on the float and its pre-IPO funding has alredy been oversubscribed.

Founder Greenberg is a former corporate attorney and he made clear that Updater's focus will be on the U.S. market where it sees maximum opportunity.

“The US has one of the most transient populations in the world. Approximately 40 million people move every year and the average American moves 10 to 15 times in their life,” he noted.

In the next one year, Updater is planning to increase its market share three times -- from 1.6 percent of home movers to 5 percent by the end of 2016. It will also double the size of the team by adding more contractors and experienced sales staff, mainly from the real estate industry.

Aiming high

Updater is setting a trend for many global tech companies by taking a leaf from 1-Page, which was the first Silicon Valley company to float its shares on the ASX, rather than going to Nasdaq and it has made history. 1-Page with its solutions, has been revolutionising the way companies are hiring new employees. It listed its shares in ASX in 2014 and saw it jumping to a staggering 1,360 percent since then.

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