Investors could be looking for the next Afterpay Touch Group Ltd (ASX: APT) on the ASX this year.
ASX Ltd (ASX: ASX) is expected to have plenty of initial public offering (IPO) activity this year with several technology businesses likely to hit the boards of the Australian Stock Exchange in 2019 according to the Australian Financial Review.
There are at least eight companies with a valuation over $500 million that are expected to be potential investments for ASX investors this year.
The ASX has a plan to be the place for smaller global technology businesses to list, partly because of its lower valuation requirements and the excitement that ASX investors have about tech shares. The larger technology businesses choose to list on the NASDAQ boards in the US.
Three of the businesses that could be on the ASX this time next year are Life360, Afterpay competitor Sezzle and Nitro.
The AFR quoted ASX general manager of listings Max Cunningham as saying “We’re a lot more ambitious than just being a stepping stone. We have a savings pool of $2.5 trillion and a market cap of $1.5 trillion for the stock market … so we can play a really an important role here in funding local and global tech, which will bring more diversity to our investors.”
This is great news for shareholders of ASX Ltd because it opens up the opportunity of exciting new investments, not just boring banks.
There’s certainly no guarantee that these future listings will be as successful as WiseTech Global Ltd (ASX: WTC) or Afterpay, but it’s worth keeping an eye on any potential future winners.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO, ASX Limited, and WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.