Auckland-based trade-tech platform developer TradeWindow plans to list directly on the NZX next week, subject to final regulatory approvals.
While the new arrival will bolster the NZX's tech segment, trading is likely to be thin. There will be no new shares issued at listing time, this coming Monday, because the company has just completed a $15 million capital raising.
The float, under the stock ticker TWL, carries an implied market capitalisation of $79.1 million.
TradeWindow helps importers, exporters, freight forwarders and customs brokers working on the frontline of global trade. Its platform covers compliance, operations management, data sharing and storage, internal and external stakeholder collaboration and end-to-end supply chain traceability.
“As a software solutions provider for those on the frontline of global trade, trust and transparency are key," chair Alasdair MacLeod said. "The disciplines and disclosures required of us as a listed entity will support our role as a trusted [intermediary] for our customers and partners.
"These include the many listed companies, co-operative entities and governments who use our software solutions to enable their international trade,” he added.
Supply chain costs are estimated to represent approximately US$2.8 trillion of "white space" available to be claimed by tradetech solutions, TradeWindow said. It is estimated that digital trade solutions could reduce trade costs by 14.3 per cent and boost global trade by up to US$1 trillion per year.
Organisations across the dairy, meat, horticulture, seafood, timber, consumer products, manufacturing and logistics sectors have used TradeWindow’s solutions to facilitate internal business processes since its launch in 2015.
Customers include Synlait, Open Country Dairy, Greenlea Premier Meats, ANZCO, Silver Fern Farms, T&G Global, Sealord, Independent Fisheries, Cedenco Foods, Whittakers, Pan Pac Forest Products, Wallace International, Airwave Australia, Hanes and UB Freight.
As a direct listing -- also known as a compliance listing rather than an initial public offering -- shares will be listed on the main NZX board to be bought and sold. However, the company’s founders are not selling down their shares immediately.
Leading the private investment round was TradeWindow's largest single shareholder, ASB Bank, which invested in 2019 and also provides trade finance to exporters.
At the time TradeWindow founder and CEO AJ Smith said the company was one of the first technology companies in New Zealand to receive direct funding from a New Zealand bank.
“The bank is committed to accelerating the progress of New Zealand’s trade environment using new technology and recognises the potential our product has to streamline trading between Kiwi exporters and the rest of the world,” Smith said.
Quayside Holdings, the majority shareholder of the Port of Tauranga, is also a strategic shareholder as is Anna Mowbray, a co-owner of toy maker ZURU Group.