Re-listed fintech hopeful comes back to the market after merger

ASX investors reacted positively when the newly minted post-merger Afterpay Touch Group hit the ASX boards last Thursday, pushing the stock 8 per cent higher on its first trading day. The listing is a result of the combination of two digital payment companies: Afterpay and Touchcorp.

Australia has a long way to go to catch up to its global counterparts when it comes to technology and innovation. According to a 2015 study on global innovation Australia ranked 17th in the world, well behind the US, Germany or the UK. More importantly, “the lucky country” also lagged regional counterparts Singapore, South Korea and our neighbour New Zealand.

Despite its impact, information technology is the smallest sector on the local stock market, making up just 1 per cent of the total index. This compares to about 23 per cent on the most quoted benchmark index of the US, the S&P 500. In addition, it says a lot that one of the most exciting tech stocks on the ASX is Xero Limited (XRO), a firm founded in New Zealand.

Perhaps that will start to change with new listings such as this fintech hopeful: Afterpay Touch Group (APT) is valued at more than $500 million.

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Source: Re-listed fintech hopeful comes back to the market after merger – The Australian