PEXA potential IPO in the next few months.

If this was to occur, it would be a great IPO for 2018 and would be keenly sort after. Cheers

PEXA heads for possible $1b IPO, one of the biggest in 2018

PEXA CEO Marcus Price is working towards a trade sale or IPO. Wayne Taylor

by Chanticleer
Transaction volumes are booming at the country's largest and fastest growing electronic conveyancing business, PEXA, as it heads towards a sale process that will see four state governments collect at least $350 million.
PEXA, which was born out of a Council of Australian Governments meeting in 2008, could well be one of the largest initial public offerings in 2018.
The IPO is contingent on the outcome of a dual track process that will pit trade buyers against the price achievable from a sale to institutions and retail investors.
The timing of the sale looks good given that electronic transactions processed through PEXA are growing rapidly. In March this year, the electronic exchange processed 80,000 property settlements compared to 45,000 in November last year.

These figures take the compound annual growth rate in transactions to 440 per cent since inception.

Chanticleer understands the PEXA board led by former ASIC chairman Alan Cameron and management, led by chief executive Marcus Price, are ready to appoint joint lead managers for an IPO.
PEXA has long been talked about as one of the hot properties for investment bankers.
The managers will work towards a float at the same time as the company's advisers, CITIC and CLSA, assess bids from trade buyers.
The potential trade buyers which are likely to include operators of stock exchanges, private equity and those attracted to infrastructure style assets.

The business could be very attractive to a large global real estate firm.
PEXA is owned by the governments of NSW, Victoria, Queensland and Western Australia, the big four banks, Macquarie Group, Link Group and Melbourne rich lister Paul Little.
This alliance between government and the private sector has led to the extraordinary outcome whereby a large scale IT project has been delivered on time and on budget. The PEXA software cost about $120 million to develop.
Call for regulation

The attraction for investors is that PEXA is developing a monopoly position. This has raised criticism from lawyers and others concerned that it will exploit its monopoly position.
The criticisms of PEXA point to the need for vigilant regulation. The company is currently regulated by the the Australian Registrars' National Electronic Conveyancing Council.
But there are strong arguments for PEXA to also be regulated by the Australian Competition and Consumer Commission, the Australian Securities and Investments Commission.
These regulatory risks will have to explained clearly in the prospectus should the company go for an IPO.

Another drawcard for trade buyers or investors in an IPO is the company's potential growth.
Since it opened for business in 2013 PEXA has processed more than $100 billion in property settlements. About 95 per cent of property refinances have been completed electronically in the states where it operates.
About 143 financial institutions and at least half of all legal and conveyancing firms are on the PEXA platform. About 35 per cent of all land lodgements nationally are currently completed through PEXA.
A major housing construction company recently integrated PEXA's software into its residential property sales system.

Price has been investing heavily in software that adds value to the customers who are conducting electronic transactions.
He has encouraged the development of software applications, known as APIs, which can be integrated with the PEXA e-conveyancing system.
One of the advantages of an electronic exchange is that it has a powerful network effect. The more it is encouraged by lawyers and banks the more transactions are processed.
As more transactions are done electronically the more that new buyers and sellers are drawn into the system.
Tony Boyd


Read more: http://www.afr.com/brand/chanticlee...biggest-in-2018-20180327-h0y1ve#ixzz5B5UBPIvP
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