SmartPay board gives green light to ASX listing application

Payments specialist will formally apply for listing after board gives approval

SmartPay has today announced that its board has confirmed its strategy for a listing on the Australian Securities Exchange.

The payment systems provider has already indicated it intends to list on the ASX, subject to board approval, and, according to a statement today: "is now able to confirm the board’s intention to list the company on the ASX subject to all regulatory and necessary shareholder approvals being obtained."

The statement continues: 'SmartPay already has a significant business in Australia and is presently increasing its sales and marketing activity through the deployment of its senior sales executives from New Zealand into the Australian market which is 6 to 7 times larger than the New Zealand market.

SmartPay is already listed on the NZX; The company's chairman, Wayne Johnson, notes in the statement: “P/E Multiples on the ASX for companies such as SmartPay are typically between 10 and 14, while SmartPay remains at around 5 on the NZSX.

“Making an ASX listing is important to increasing shareholder value. As part of this process we have already met with a number of brokers in Australia who are showing interest in supporting the stock which should result in improved liquidity in the larger Australian market”.

SmartPay intends to maintain dual listings with the New Zealand and Australian exchanges.

A conditions to listing on the ASX is that the company’s share price is at least 20c. In order to assist the company to meet this condition the company will undertake a share consolidation at a ratio of 10 to 1.

It is expected that the listing process will be completed by the end of August 2011.

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