After raising AU$37 million in an IPO, e-commerce company iBuy Group, defied listing début blues to close at 33.5¢ (Australian), 4.69 per cent above the 32¢ issue price at the Australian Securities Exchange (ASX) on Friday. iBuy listed yesterday with a market cap of $113 million.
Catcha Group, a Malaysia based investment firm, owned by Malaysia based Lucas Elliott and Singapore based Patrick Grove, holds the largest share of 25 per cent in iBuy. Three of Catcha Group’s portfolio companies are listed on various stock exchanges, namely iProperty Group and iCarAsia on the Australian Securities Exchange, and Catcha Media on ACE Market of Bursa Malaysia.
As per iBuy’s IPO prospectus, iBuy will spend part of the raised money to buy deal sites, which include Malaysia based dealmates.com, partly owned by Patrick Grove and mydeal.com.my owned by Dealguru; Singapore based deal.com.sg, again owned by Dealguru; and Hong Kong based beecrazy.hk owned by Buy Together.
The total fixed amounts payable under the Purchase Agreements, as per the Prospectus, are:
US$ 29,400,000 in cash; and
US$ 35,880,000 in Shares (at the Offer Price), equating to approximately 120,370,370 Shares.
A screenshot from the iBuy Prospectus on ASX’ website
As per the Prospectus, “A variable payment of an amount expected to be approximately US$ 400,000, payable in Shares at the Offer Price, is anticipated to be payable to the Dealguru Sellers on the basis that the valuation of iBuy on Completion of the Offer (but excluding the Shares to be issued under the Offer) is expected to exceed US$ 70 million.”
The sites are doing well, and the buyout reflects Grove’s thought process of investing into successful and proven ideas. The same holds true for his investments into startups. In an interview with e27, earlier, Grove had said, “Catcha Group often looks out for entrepreneurs in Asia who are trying to replicate a proven business model. If someone tells me, ‘I’m going to invent some new technology that nobody in the world has ever seen before’, we’re not interested.”
The influx of acquisitions within the region encourages and attracts investors to see value in these tech businesses. Grove attributes it to a cycle. “People start businesses, people sell businesses. So you need this wheel to keep moving for this industry to grow. So, I’m happy with it. I think it’s great. I’m happy for all the investors who made money because that means that money will come back into other companies.”
For the record, Rebate Networks GmBH, is the second largest shareholder in iBuy.