It’s just happened again – another Australian tech company has just completed a back door listing on the Australian Stock Exchange.
This time it’s retail tech company SkyFii which raised $3.5 million in the process at 20 cents a share.
Listing through RKS Consolidated, a shell, the company had a market cap of $20 million.
SkyFii captures and uses data to drive sales and customer loyalty in retail spaces. It analyses customer behaviour and relays insights back to retailers enabling them to deliver real-time, targeted content and offers.
More than 484,000 shares have been traded since the market opened this morning, hitting a high of 26 cents before sitting at 24 cents a short time ago.
Since January there have been more than a dozen of these transactions on the ASX with a good portion of them happening between a mining shell or exploration company and a small-time tech venture.
It’s a trend which has got a number of people asking is it 1999 again? The answer is probably not just yet but it can be read as a sign that Australia’s economy is transitioning with funds exiting mining and entering tech.
The rise of the reverse takeover and back door listing has not gone unnoticed.
Earlier this year venture capitalist Dan Petrie told Business Insider it was a dangerous idea which has the potential to give tech stocks a bad name in Australia.
ASIC has also previously said it’s monitoring the trend closely.