SYDNEY (Reuters) - U.S. family tracking app operator Life360 has begun approaching potential investors for a listing in Sydney, fund managers said on Monday, valuing the company at up to $675 million in what could be Australia’s biggest technology IPO in three years.
Opting for an Australian listing, where the startup already has a number of institutional investors, Life360 plans to raise about $100 million via an initial public offering (IPO) by mid-year, current investors said.
That would be the largest amount since wealth management software provider Bravura Solutions Ltd raised $111 million when it listed on the Australian Securities Exchange (ASX) in 2016, Refinitiv data showed.
Life360 provides a free mobile app that allows family members to track each other, as well as “premium” services such as a panic button that sends location notifications. The firm did not respond to requests for comment.
“The ASX remains grossly underweight in terms of technology companies with global growth stories,” said Phillip King, chief investment officer at Regal Funds Management.
The benchmark S&P/ASX 200 index features 11 tech firms. By comparison, United States’ S&P 500 index has 68 much larger tech names.
“We are already invested in the business after leading the pre-IPO round, and will be following our money into the IPO,” King said.
The app maker has about 18 million monthly users, half of whom are outside the United States - including about 300,000 in Australia - investors told Reuters, quoting from a Credit Suisse research note.
It is valued at about 9 to 11.5 times its 2019 forecast revenue of $58 million, they said, declining to be identified as they were not permitted to speak with media.
Last year, Life360 almost tripled organic revenue to $32 million, King said.