The Brief:
Carma Limited has made a rare tech debut on the ASX, raising $100m through an oversubscribed IPO.
KWM advised on the listing, which was among the first to use ASIC’s fast-track IPO process.
It’s not every day an Aussie tech startup lists locally.
Carma, the online used car retailer, hit the ASX with a $370m debut, joining a small group of home-grown tech firms choosing the ASX over offshore markets.
The deal
Founded in 2021 by ex-bankers Lachlan Macgregor and Yosuke Hall, Carma has quickly become one of Australia’s best-known online used car platforms. Anything used car-related? Carma’s got you covered, from inspection and reconditioning to pricing, financing and delivery.
The company raised $100m through an oversubscribed IPO, including a $70m primary offer and a $30m selldown of existing shares, valuing Carma at around $370m.
Carma sold 2,000 vehicles last year, generating $68m in revenue, and now plans to use the funds raised to scale its reconditioning operations, boost car inventory and expand its ‘Sell-to-Carma’ program.
Backed by Tiger Global, General Catalyst, Five V Capital, Terrace Tower Group, Entrée Capital, Avenir Growth and Regal Partners, it joins a small cohort of home-grown tech firms opting to list locally.
Carma’s debut, however, was lukewarm, with shares slipping around 9% on opening day to $2.43 from the $2.70 issue price. Not to fret — investors pointed to broader market weakness. With the Australian used car market worth $118bn and over 3.5 million vehicles sold annually, there’s still long-term promise in Carma’s model.
Carma Chair Owen Wilson called the float “a pivotal milestone for Carma”, adding that the IPO “will help provide the capital needed to fundamentally transform the pre-owned car experience for Australians.”
Who’s acting
KWM advised Carma with a team led by partner Anthony Boogert, supported by senior associate Henry Sit and solicitors Eliza Fairbairn, Bella Kidman and Harrison Zeng.
It’s encouraging to see an Australian technology company of Carma’s calibre and backed by leading offshore and domestic VC and growth equity funds choose to list locally, reaffirming the ASX as a viable destination for innovative, growth-stage businesses.
He added that the IPO’s use of ASIC’s fast-track process “helps streamline listings and enhance efficiency for issuers and investors alike.”
Source: KWM