Anteris (ASX:AVR) has announced it intends to re-domicile and set up digs on the Wall Street NASDAQ index – joining Tamboran Energy, and until plans fell through, Telix.
Anteris has set up a company in the business-friendly US jurisdiction of Delaware called Holdco which will in turn take over all Anteris assets and launch its own IPO. The company’s shares are currently worth $14.25 on a market cap of $253.94M.
“Shareholders and optionholders in ATL will effectively exchange their shares and options in ATL for equivalent securities in Holdco,” the company wrote on Tuesday.
The stock will retain a presence on the ASX by way of chess depositary interests (CDIs), effectively the way Australian traders buy offshore shares on the common bourse.
As for why, exactly, the company needs funding to launch a key study, and expects a US listing may lead to “increased visibility.” What that really means is more broker and analyst coverage – the company admitted to itself on Tuesday.
This good spin to cover up a more troubling reality not often talked about: the ASX has been struggling in recent years. Just look at the ongoing IPO drought.
A number of companies have started looking to Wall Street listings in the last few years as the overall number of people trading on the ASX drops in the current economic climate. Newsflow volumes have been subdued compared to where they were a year ago for months now.
All in all, there’s more cash in American markets. Consider that smaller explorers based in Africa unable to list on US markets due to the costs and risks involved have instead started tapping funds in places like Angola and Zimbabwe for capital instead of Australian investors, who aren’t giving up the cash as easily as they used to.
AVR last traded at $14.25.