Accounting software company Reckon debuted on the Australian Stock Exchange (ASX) today, peaking at over double its issue price. The share prices topped out at $2.90 during trading with the company set to follow in the steps of its competitor MYOB, which listed on the ASX just over a week ago and doubled its share price in the opening day's trading.
The initial public offering (IPO) will raise $59 million, with 56.3 million shares offered at a retail cap of $1.05. The company, which sells Intuit's Quicken accounting products into Australia and the surrounding region, was optimistic before the listing that the shares would trade above the offering price, mainly due to oversubscription. The final trading price today was $2.81.
Reckon customers, including registered users of current Quicken software and registered users of Quicken.com.au's online stock brokering service were given priority in the float. The company, in its prospectus, expected market capitalisation following the float to reach $110 million.