Solid ASX debut for new tech success story WiseTech

Shares in logistics software firm Wisetech Global have risen nearly 10 per cent after its listing on the ASX.

WiseTech Global’s Richard White.

Australia’s latest technology success story, WiseTech Global, has made an impressive debut on the ASX, with the logistics software maker trading nearly 10 per cent higher than its listing price of $3.35.

The stock began trading at midday, with the price range fluctuating between $3.41 and $3.67 in the first hour of trade.

At 1.21pm (AEST), the stock was still up 32 cents, or 9.55 per cent, at $3.67, with more than 2.6 million shares changing hands on the Australian Securities Exchange.

The jump in share price marks a healthy start for WiseTech as a listed company.

The company, which issued over 50 million shares under the offer to raise $168 million, has attracted strong demand from offshore investors, with many local institutions opting to steer clear.

WiseTech expects to post a net profit of $13 million for the 2016 financial year to June 30 with revenue forecast to come in at $102m.

The deal was covered at $3.20, equating to a valuation of 6.3 times forward revenue. The initial price range was set at $2.58 to $4.12, representing a valuation multiple of 5.2 to 8 times projected pro forma annual revenue. However, the company opted to pursue a higher price and chase a narrower list of funds.

According to founder Richard White, the IPO is just the start for the next phase of his company’s journey.

“As we grow our global capability and product innovation, we will continue the sensible use of capital and our focus on growing customer and shareholder value,” he said.