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A New Aussie Social Network Is Heading To The ASX In Backdoor Listing

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In a continuation of the recent trend for local technology companies, social network is headed onto the ASX via a reverse takeover of resource company GRP, according to the AFR.

“GRP Corporation will acquire Spring.Me’s parent company Helpa Services, and rebrand as Spring Networks, as the company seeks to raise $4.5 million from existing and new investors on the sharemarket,” the AFR reported.

Helpa co-founder Colin Fabig was pretty bullish on the prospects of Spring moving onto the ASX saying that: “It looks like Aussie speculative investors aren’t going to just jump into mining or biotech but are also going to support Australian tech.”

That’s good news for investors and the economy if Australian tech firms can list here on the ASX rather than heading to Silicon Valley.

But investors are going to need to be patient with because like US tech counterparts, revenue is not yet the priority. Rather the company is focused on acquiring users with plans to hit 100 million over the next 5 years for critical mass before it starts advertising.

The Aussie social network has had an impressive start, growing to 4 millions users a month in its first year.

“Twitter, LinkedIn and Google all spent three or four year before they put advertising on their websites because you have to develop the consumer proposition,” Fabig told the AFR.

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