Australian Bond Exchange

Offering high yeild and high security investments

Australian Bond Exchange (“ABX”) ASX IPO

  • ASX FinTech IPO
  • Over $22b in transaction volume to date and over $5m revenue in FY21
  • Raising $5.2m to $10.4m to accelerate business growth and client acquisition
  • Indicative Market Cap at IPO $71m/ $76m (min/ max)
  • Prospectus Lodged 22 October
  • Broker Offer closes 19 November
  • The presentation, prospectus and term sheet can be downloaded below…
Presentation
Prospectus
Term Sheet

Summary

  • With over $5m revenue in FY21 ABX is a FinTech with a proven model: fully built, operating and generating revenue
  • Since 2015 ABX has become Australia’s pre-eminent marketplace for private client investment in fixed income
  • ABX has developed a financial technology business that offers Bond Trading, Settlement and Custodial services
  • Fully operational, interconnected with IRESS, Australian Money Market (AMM) & ABX’s own B2C website
  • Broker & other partners already include DNX Solutions, Shaw & Partners, Perpetual, Taylor Collison and ANZ
  • Over $22b in transaction volume to date and over $5m revenue in FY21
  • FY21 saw 58% increase in transaction volume; and
  • 79% increase in revenue
  • Now ready to scale up
    • A clear growth strategy targeting a large, under-serviced and growing market
    • Bulk of funds from the IPO will go towards sales and marketing and enable ABX to grow even faster
    • Broker Bids due by 19 November

The fixed-interest market is multiple times larger than the Equities Market

 

Australia CY20 Equity Issues Bond Issues
# of new issues 176 689
Value $41b #286b
Ave daily turnover $4b $63b
Average transaction $4,376 $2.9m

 

ABX has potential to become an Australian and a Global fintech giant

Business Model

  • ABE PL – the AFSL which provides investment advice & trade execution services

  • ABE provides advisers & brokers access to an OTC trade execution & settlement service where they can provide their clients with direct, efficient & cost-effective access to the Australian OTC bond market

An integrated suite of products

  • Transaction Engine

  • Settlement Engine

  • Global Asset Register

  • ABE Self Service Portal

  • KYC Onboarding

Client base includes Bond Investors such as:

  • Individuals
  • SMSFs, and
  • Institutional Investors:
    • Fund managers
    • Financial advisers; and
    • Large local & global financial institutions

Revenue is generated by charging:

  • A trading spread on each transaction

  • A trading spread or commission on each transaction as part of its institutional trading desk

  • Bond Investor clients brokerage on transactions as part of its financial advice and dealing services division; and

  • Issuers an origination fee for product origination

High Growth in Transactions and Revenue

  • Since its inception ABE has grown rapidly- generating transaction volumes of over $22B
  • A 58% increase in transaction volume to
  • $9.3 billion in FY 21
  • 79% revenue growth to $5.3m in FY21

A clear growth strategy

  • Increase the market education and penetration
  • Grow beyond the current core services into relevant ecosystems
  • Increase addressable market through product development
  • Monetise their own data
    Further integrating API technology

ABX is ahead of international bond market comparators

Other bond trading platforms do not provide the extent of functionality of ABX. 

ABX pre-trade, trade execution and post-trade services compared to equities market

Now Scaling up: Use of funds

  • Revenue generation: Sales and Marketing
  • Trading platform & IP: Trading platform dev & IP protection
  • Product Development: Operational expenses
  • Run the business: Working Capital
  • Inventory and Liquidity funding: Bond Trading

Indicative timing

All dates are subject to change

Lodge Prospectus

 22 October 2021

Offer opens

 1 November 2021

Broker Offer & Chairman’s list offer closes

 19 November 2021

Public Offer Closes

 19 November 2021

Settlement of the Offer

 26 November 2021

Expected date for quotation on ASX

 6 December 2021

 

Joint Lead Managers

Register your interest

For more information on the ABX IPO, contact Sean Sandilands on 0412 166 471 email ssandilands@nullpulsemarkets.com.au or register below for a firm allocation.

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