UPDATE: In a stunning move, the Australian Securities and Investments Commission (ASIC) and the Australian Securities Exchange (ASX) are in urgent discussions with software giant Rokt to execute a groundbreaking dual initial public offering (IPO) that could keep the company valued at $7.2 billion in Australian hands. This unprecedented proposal aims to enable Rokt to list simultaneously on both the ASX and New York’s Nasdaq, a development that could reshape the landscape for foreign companies entering the Australian market.
Sources confirm that these discussions, which are still in their early stages, could allow Rokt shares to begin trading in both countries from day one of its listing. This innovative strategy aims to attract a wave of foreign companies to the Australian sharemarket, addressing a concerning decline in the number of large firms listed in Australia.
Rokt, co-founded by former Jetstar CEO Bruce Buchanan in 2012, specializes in software that tailors offers to online shoppers based on their purchase history. Currently headquartered in New York, Rokt’s customer base is predominantly international, making its potential dual IPO a significant opportunity for attracting investors from both Australia and the US.
The implications of this dual listing are profound. It would allow Rokt to appeal to a broader investor base while giving existing shareholders the choice of listing their shares in either market. This could be particularly advantageous for Rokt’s investors who prefer ASX-listed shares for various strategic reasons.
A source involved in the talks indicated that Rokt might aim for a listing in New York early one morning (Australian time), with trading on the ASX commencing simultaneously. “The number of companies listed on the ASX keeps shrinking, so if a dual listing could bring more companies to the ASX, that’s definitely a good thing for investors,” said Martin Hickson, a portfolio manager at Sydney-based 1851 Capital.
The ASX has successfully attracted companies from sectors like mining and gaming but has never executed a dual listing simultaneously with another market. This innovative approach comes in response to the increasing number of prime Australian candidates, including software company Atlassian, which have chosen to list on Nasdaq instead.
ASIC has openly expressed its willingness to explore new strategies to attract foreign businesses to Australia’s public markets. Just last month, the regulator announced it is considering measures to streamline dual listings for foreign companies, signaling a proactive approach to revitalizing the Australian IPO landscape.
Rokt’s potential dual IPO could set a precedent for other technology companies with Australian roots, such as Canva, which recently reached a staggering valuation of $65 billion. The success of Rokt’s IPO could very well encourage other large unlisted firms to consider similar paths.
As discussions continue, Rokt is reportedly seeking legal and structural advice on how to navigate compliance with both Australian and US regulations. Notably, Rokt has raised over $500 million from notable investors including TDM Growth Partners, Square Peg Capital, and Tiger Global, among others.
With the momentum building around Rokt’s potential dual listing, the financial community is watching closely. If successful, this could dramatically change the dynamics of how companies approach their IPO strategies in the future, potentially leading to a surge in dual listings that would benefit both investors and the broader market.
Stay tuned for more urgent updates on this developing story as Rokt and regulatory bodies continue to negotiate this landmark opportunity.
