When Federal Treasurer Jim Chalmers hands down the budget on 14 May, the pressing need for fiscal responsibility is likely to trump spending programs.
In an era of fake news, it’s getting more difficult to separate fact from fiction. Yet it’s imperative we do so because the consequences for being deceived can be enormous.
Airtasker (ASX:ART) shares skyrocket on ASX debut
Airtasker (ASX: ART) – Shares in the “gig economy” service-on-demand platform have soared on its ASX debut with shares hitting a high of $1.16 after raising $86.3 million at an IPO price of 65 cents. The listing was delayed by one day due to a “processing omission” by the ASX. From the raising, Airtasker will receive $15 million, which it will use for marketing, product development and working capital, while the remaining $68.7 million will provide existing shareholders, including Seven West Media, an opportunity to realise all or part of their investment in Airtasker.
Airtasker is Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people and businesses who want to work. The platform does this through its e-commerce platform by allowing customers to post a job ad, which is seen by Airtasker’s army of tradies and other professionals that complete everyday tasks such as handyman jobs, domestic cleaning through to tax consultancy and legal advice.
Surprisingly, the stock rose 78% despite entering into a market that has been actively rotating out of growth stocks and into value stocks. At listing, ART had a market capitalisation of $255.4 million. This makes Airtasker the third largest IPO this year by market capitalisation, behind meal-kit home delivery service My Food Bag Group (ASX:MFB) and mineral drilling contractor DDH1 (ASX:DDH). Airtasker boasts a marketplace of 4.3 million people and creates a new work opportunity approximately every 17 seconds.
The tech company is priced for growth, with a forecast revenue of $24.5 million for FY21, despite being loss-making, posting a net loss of $5.2 million in FY20 and forecasting a net loss of $12.3 million for FY21. The float comes following rival Hipages’ (ASX: HPG) listing late last year, which failed to captivate investors and has since tracked sideways. In Australia, Airtasker was named the most commonly used platform for “gig” workers. These are people employed through the platform rather than being employed by the platforms.
