Matt Barrie Is Unfazed By The Heavy Markdown Of Freelancer's Share Price This Year

Freelancer CEO Matt Barrie. Image: Supplied.

Shares in Australian digital outsourcing company Freelancer have been crushed this year.

In 12 months Freelancer shares have fallen from around $1.80 to $0.55 cents a piece.

When the company listed on the ASX in November 2013 it briefly started trading at $2.50, five times the initial ­public offer price of $0.50. It was the third biggest opening ever achieved on the ASX and valued Freelancer at a billion dollars.

The fall in the share price has a lot to do with original stock allocations, Freelancer founder and CEO Matt Barrie told Business Insider.

“Our IPO was the third biggest opening ever on the ASX for a non-seed stage float. The interest we huge. We had well over $150m interest in a relatively small IPO, probably closer to $300m. Yes in hindsight I would have allocated the stock in more concentrated positions rather than spread it around thinly which encouraged profit taking when the stock opens up 500 per cent on the first day,” he said.

But Barrie isn’t too concerned about the current share price.

“Shares go up and down. We have a small free float so our stock goes up and down quickly,” he said.

“I don’t worry about the stock price, I focus on execution and the business – which is tremendously better than a year ago.

“The business is going gangbusters – revenue is up, projects are up, users are up. It’s a much better and more valuable business than it was at the IPO.”

Barrie is still confident the ASX is the right platform for tech companies in Australia to secure capital and grow.

“It is fantastic that the door is now open for technology companies in Australia to get financing on the ASX. The value of technology company IPOs in Australia this year is so far $1.5 billion according to Dealogic. This is what our country needs given all the commodity markets which power the GDP are collapsing,” he said.

“This is very good for the country – it is what we need. I am here in the EU and even the British are jealous.”

Here’s the chart.

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