Successful ASX listing for MainstreamBPO thanks to long term clients
Back in 2006 the founders of MainstreamBPO identified a gap in the fund administration market for an independent provider. They went on to establish MainstreamBPO as a boutique alternative to exiting fund administrators and won the business of fund managers, many of whom have gone on to grow exponentially.
Like many of its clients, MainstreamBPO has achieved significant growth. On 1 October 2015 the company reached a significant milestone by officially listing on ASX under security code “MAI“.
MainstreamBPO now has a market capitalisation of approximately A$50 million, with A$8.7 million raised through its initial public offering.
The capital raising was supported by a variety of brokers as well as institutional and retail investors. Directors related shareholders held approximately 72% of issued capital at listing, which they have voluntarily escrowed.
Speaking at the company’s ASX listing ceremony, Chairman and Chief Executive Officer Byram Johnston acknowledged the commitment of MainstreamBPO’s loyal client base.
“We have over 70 long term clients and we administer over 300 funds for these clients. Some of these clients have seen phenomenal growth over the last 5 to 10 years and we have grown as we support their administration requirements.” said Mr Johnston.
Mr Johnston continued, “Today is a celebration to mark a key milestone in the life of our company. No matter what changes there are in the broader financial services sector there will always be a demand for administration services. I look forward to working with the board and our team of dedicated staff as we embark on our next chapter.”
MainstreamBPO, which has more than 100 staff in offices in Sydney, Melbourne, Singapore and Hong Kong, has three main business lines: fund administration for managers, super administration for trustees and share registry services.
The share price closed at A$0.56 on 25 November 2015, up 39% from the float issue price of A$0.40 and putting the stock’s performance in the top third of ASX floats in the calendar year 2015.*
Learn more about MainstreamBPO Limited in our Shareholder Centre.
*Source: “Floats Fly High”, by Tony Featherstone, The Australian Financial Review (28-29 November 2015).