Tuesday, November 18th, 2014

MELBOURNE, AUSTRALIA -- (Marketwired) -- Aconex Limited (ACN 091 376 091), provider of a leading cloud collaboration platform for the global construction industry, today lodged a prospectus for an initial public offer (IPO) and listing on the Australian Securities Exchange (ASX) with the Australian Securities and Investment Commission (ASIC). The offer to certain institutional and retail investors is expected to raise a total of approximately A$140 million, based on an offer price of A$1.90 per share. Of this amount, approximately A$50 million will be raised by the issue of new shares by Aconex and approximately A$90 million will be raised by the sale of shares by existing shareholders.

Aconex customers use its cloud-based platform to collaborate on large-scale, complex construction projects across the entire project lifecycle, from planning to construction, delivery and operation. The company's flexible and integrated platform provides technologies to facilitate and enhance industry activities by connecting all project participants, such as owners, developers, contractors, and suppliers. Using Aconex, they are able to manage documents, communicate and streamline business processes via desktop, laptop, tablet, or mobile devices from field and office locations.

Founded in Australia in 2000, Aconex has served over 50,000 user organizations in more than 70 countries around the world, working on projects valued at more than A$800 billion. These projects include the Panama Canal expansion, the Dubai Metro construction, the Roy Hill Mine development in Western Australia, the Venetian Macao, the Battersea Power Station redevelopment in London, and the New York City Hall reconstruction. The Aconex platform is used on large-scale projects where timely delivery, risk mitigation, compliance, and cost management are crucial.

ASX Listing and Business Outlook
Aconex CEO Leigh Jasper commented: "An ASX listing is the company's next major growth catalyst, as it gives us access to capital markets and greater flexibility to pursue new opportunities. While increasing our visibility globally, it will provide an opportunity for our existing shareholders, who have supported us for many years, to realize all or part of their investment.

"We believe that Aconex will benefit from the growing adoption of cloud collaboration software in the construction industry worldwide," Mr. Jasper continued. "The rising complexity and cost of construction projects, the digitization of project documents and workflows, and the adoption of increasingly advanced design tools, such as building information modeling (BIM), are all increasing the customer benefits of using Aconex. We are confident that these trends will drive our business growth into the future.

"Our aim is to continue to scale up the business through increasing penetration of international markets and expansion of our product offering, while consolidating our leading market position in Australia and New Zealand (ANZ). The ASX listing will help facilitate this by strengthening our balance sheet, increasing our visibility and providing access to capital markets."

Global Business Growth
The strength of the Aconex Software-as-a-Service (SaaS) subscription model and network economics is demonstrated by the company's leading market position in ANZ, its deep penetration of the ANZ market and the profitability of its ANZ business. Of the top 50 contractors in ANZ, 80% are customers of Aconex and 42% have standardized the use of Aconex across all of their projects through enterprise-wide agreements.

Aconex is focused on replicating its success in ANZ globally as it continues to penetrate multiple international markets, most of which are larger than construction markets in the ANZ region. Aconex has a well-established, global sales, marketing and customer service network of 250 employees across 22 countries. The company has also invested in its business and technology infrastructure to provide a significant platform from which to support customers and the current growth trajectory of its international business.

Given the low penetration of construction collaboration solutions in the majority of other international markets, the global industry position of Aconex and the scalability of its SaaS architecture, the growth and profitability of the global business are expected to continue following a trajectory similar to that of ANZ over time. This is likely to represent the largest growth opportunity for Aconex.

Aconex co-founders, non-executive directors and executive management will retain a majority of their existing shares on completion of the IPO. Francisco Partners, the company's largest shareholder with 24% of the total shares on issue, has agreed to sell all of its shares through the IPO. Aconex shares are currently expected to begin trading on the ASX on or around December 9, 2014, under the ticker code ACX.

Key Offer Statistics

Offer price                                                           A$1.90
Total number of shares to be offered under the offer            73.7 million
Gross proceeds of the offer                                  A$140.0 million
Total number of shares on issue on completion of the offer     164.4 million
Total number of shares held by existing shareholders on         90.7 million
completion of the offer                                                     
Market capitalization at the offer price(1)                  A$312.3 million
Enterprise value at the offer price(2)                       A$286.4 million
Fully diluted enterprise value at the offer price(3)         A$295.9 million
Fully diluted enterprise value / pro forma CY15 forecast                3.5x
revenue (times)                                                             
Fully diluted enterprise value / pro forma CY15 forecast                    
revenue (times)(4)                                                      3.5x

1) Market capitalization at the offer price is defined as the offer price multiplied by the total number of shares on issue on completion of the offer.
2) Enterprise value at the offer price is defined as market capitalization at the offer price, less pro forma net cash of $25.9 million as of June 30, 2014.
3) Includes option adjustment to cash and equity value for 6.3 million vested and 8.0 million unvested options (assumes 80% vesting conversion).
4) There is no guarantee that forecasts will be achieved.

Key Dates
All dates are indicative only and are subject to change at the company's discretion.

Prospectus lodgement with the ASIC                 Monday, November 17, 2014
Opening date for applications                     Tuesday, November 25, 2014
Closing date for applications                     Thursday, December 4, 2014
Commencement of trading on the ASX                 Tuesday, December 9, 2014
Dispatch of holding statements                  Wednesday, December 10, 2014

Obtaining a Prospectus
The Aconex IPO prospectus is available to Australian residents only in electronic form at http://www.aconex.com/shareoffer. A paper copy of the prospectus is available free of charge to any retail offer applicant in Australia by calling the Aconex Offer Information Line at 1300 737 760 (within Australia) or +61 2 9290 9600 outside Australia. Offers of shares in connection with the IPO will only be made in, or accompanied by, a copy of the IPO prospectus. Potential investors must consider the prospectus in deciding whether to apply for shares under the IPO.

The prospectus is not available in the United States or other jurisdictions outside Australia.

The retail component of the offer, which will comprise a broker firm offer and a chairman's list offer, is scheduled to open on Tuesday, November 25, 2014 and close at 5.00 p.m. AEDT on Thursday, December 4, 2014. There is no general public offer of shares under the IPO. Investors wishing to apply for shares must do so through a broker appointed by the joint lead managers and underwriters of the IPO, Macquarie Capital (Australia) Limited and UBS AG, Australia Branch. Eligible investors may apply for shares by completing an application form that will be in, or will accompany, the prospectus, and submitting the completed application form to a participating broker. Eligible investors should refer to the prospectus for further details.

The company's Australian legal adviser is Herbert Smith Freehills. Ernst & Young is the company's auditor.

For more information about Aconex, please visit the corporate website at http://www.aconex.com.

Forward-Looking Statements

This announcement contains forward-looking statements, which are statements that may be identified by words such as "may," "forecast," "expects," "could," "believes," "estimates," and other similar words. These statements are based on an assessment of present economic and operating conditions and on a number of assumptions regarding future events and actions that, as of the day of this announcement, are expected to take place. Such statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions, and other important factors, many of which are beyond the control of the company and its directors and management. The company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur.

Tod Bottari
Senior Director, Global Communications and Investor Relations
+1 650 538 3309
Email Contact

Citadel Communications
Matthew Gregorowski
Senior Consultant
+61 2 9290 3033
Email Contact 


Aconex, cloud, construction, engineering, project management, ASX, IPO



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