The PEXA Group Limited (ASX: PXA) share price has made its long-awaited appearance on the ASX boards on Thursday. This follows the completion of the online property exchange network operator’s initial public offering (IPO).
However, its first day has been a bit of a mixed one. At one stage, the PEXA share price was down over 4% to $16.40.
It has since rebounded and is now trading broadly flat at $17.12.
The PEXA IPO
PEXA’s shares landed on the ASX today after raising gross proceeds of $1.174 billion at a price of $17.13 per share. This gives the company an enterprise value of $3.3 billion.
The company notes that the IPO has introduced new institutional and retail shareholders who can support PEXA through the next phase of its growth. In addition, Link Administration Holdings Ltd (ASX: LNK) remains the company’s largest shareholder with a 42.8% interest, followed by Commonwealth Bank of Australia (ASX: CBA) with a 23.9% interest.
PEXA’s Chairman, Mark Joiner, was pleased with the outcome of the IPO.
He commented: “We are delighted with the outcome of the IPO and the support shown by institutional and retail investors. Our listing today on the ASX marks another important milestone for PEXA, as we look to explore opportunities to take our experience and expertise into new markets in Australia and internationally. I would like to thank our existing shareholders for their ongoing support and warmly welcome new investors, including many of our employees and practitioner partners, to share in the exciting journey we have ahead of us.”
Ahead of its float, PEXA provided the market with an update on its performance.
According to the release, property market volumes remained strong at the end of FY 2021. This saw transaction volumes through the PEXA Exchange in the fourth quarter of FY 2021 increase 4% ahead of its prospectus forecasts.
More than 960,000 PEXA exchange transactions were processed, compared to its forecast of 923,000. This also represents a 48% increase over the prior corresponding period in FY 2020.
And while there was a slight issue yesterday which led to the platform being offline for almost two hours, it notes that all property settlements that were in ‘Ready’ status proceeded yesterday, with the remainder requiring rebooking. This hiccup may be what has taken some of the shine off the PEXA share price on day one.