Investment Selection & Strategy
What investments are targeted and why
The goal of the Board is to identify investments which are expected to have a short term valuation uplift upon an ASX listing and also to perform strongly in the longer term. The Board will focus on investments in unlisted growth companies and pre-IPO company offers that are not available to retail investors i.e. “wholesale” or “sophisticated” only offers.
These investment types typically offer greater returns than public offers, while carrying less risk than early stage / start-up company offers.
Unlisted growth companies - these are companies seeking capital for expansion prior to a planned ASX listing, typically in 1-2 years. These investments are typically discounted significantly compared to listed peer valuations.
Pre-IPO companies - companies that are planning to list on the ASX in 3-12 months and are raising a small amount of capital at a discount to the planned IPO price, with funds raised typically to be used for bridge financing or costs of listing preparation. These investments are typically discounted compared to the eventual planned IPO offer price.
Investment Selection Criteria
Industry
To invest in companies that primarily operate in the following industries:
• Technology • Mineral exploration • Financial services • Healthcare & biotechnology • Telecommunications • Media
ASX listing
Intention and clear path to an ASX listing, within 18 months at most
Valuation
Target discount to proposed IPO price of at least 20% (calculated before deducting fee), but greater in the case of growth companies
Key characteristics
• Strong management and board with a track record of success
• Preference for companies headquartered and / or operating primarily in Australia
• Companies with the ability to raise private capital and / or reach cashflow breakeven in the short term in case the IPO is delayed
• Potential to scale and add significant shareholder value in medium to long term.