IPO Watch: Touch Ventures post-payment-backed investment vehicle is expected to be listed on ASX on Wednesday


Afterpay-backed investment fund Touch companies (ASX: TVL) is expected to join ASX on Wednesday.

Touch Ventures raised $ 100 million at 40 cents a share and is expected to be capitalized at $ 285.3 million when it debuts in ASX.

It was officially launched at the end of 2019 and was 44% owned by Post-payment (ASX: APT) although it also has other shareholders, including Alex Waislitz and Duncan Saville.

Afterpay will own 24.3% after the deal is closed, and the two companies have a formal collaboration agreement whereby Afterpay could refer potential investment opportunities to Touch Ventures.

TVL has made five investments prior to the publication of its prospectus, totaling $ 75.4 million to date and hopes to expand the portfolio over time. These included:

  • Happiness – a BNPL company focused on China
  • Send – a messaging platform
  • Basiq – a financial data platform
  • Play travel – an online travel reservation and payment platform and;
  • Post-payment – a BNPL company focused on the United Arab Emirates

And today, just two days before listing, Touch Ventures announced it has made another investment in Refundid, a platform that offers instant cash returns to buyers who return their goods.

He paid $ 1 million for a 10.4% stake and also provided a $ 1 million term loan facility.

Touch Ventures chairman Mike Jefferies and CEO Hein Vogel both said the listing was a milestone for the companies and promised the portfolio would grow over time.

“While this is an important milestone, Touch Ventures’ journey has only just begun and we look forward to working with leading entrepreneurs in Australia and internationally who are building the next generation of businesses. that will boost local and global economies, ”said Vogel.

The listing of Touch Ventures comes two months later Post-payment (ASX: APT) unveiled a $ 29 billion merger and acquisition deal with payments giant Square.

The Afterpay service will be integrated into Square although the company will remain listed on the ASX.

Comparable companies

While there is no shortage of ETFs and LICs that invest in mid to large cap tech companies, there is only a handful of other ASX companies that are investment vehicles. for start-ups.

But one of the few others is Bailador (ASX: BTI) which has a portfolio of over $ 200 million.

It had a successful FY21 with a near doubling of its share price, a profit of $ 27.6 million, a $ 52 million increase in its investments as well as three full cash investments and a merger.

Another company was Sky Blue (ASX: BLA) but it was placed in receivership and its assets were recovered by one of Wilson Asset Management’s LICs – Alternative assets WAM (ASX: WAM).

While WAM retains some of Blue Sky’s private equity investments, it also owns stakes in real estate, infrastructure and agriculture.

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