Myob ipo

[minimoke]

I use two of their products so I'll have a look at the prospectus. Apparenyly some dispute on customer numbers. (Eg i use one product but pay no fees)

Planned listing early May 2015

[Harvey Specter]

(Eg i use one product but pay no fees)But you would of bought the license in the first place?

And when it is no longer suitable (ie. needs to be updated) will you move to MYOB online version (the easier migration??) or to Xero, or to excel?

From the little detail in the NBR article, they have hardly grown total numbers at all but their cloud numbers have increased which suggests people take the easy migration route?

[mayday]

But you would of bought the license in the first place?

And when it is no longer suitable (ie. needs to be updated) will you move to MYOB online version (the easier migration??) or to Xero, or to excel?

From the little detail in the NBR article, they have hardly grown total numbers at all but their cloud numbers have increased which suggests people take the easy migration route?


I was with MYOB for several years until I found Xero was much easier to use in terms of cloud-based platform. So I am now a happy Xero user. Never used MYOB online platform but Xero has been so far flawless so I have no intention to move back to MYOB (can't bother even try it). Although their IPO attracts me, it's clear MYOB have been losing their customers (mostly switched to Xero). Yet again, market needs competition so MYOB will run along with Xero eventually imo.

[Aaron]

I would be sceptical as I used to own MYOB shares when it was previously listed on the ASX. Good growth and healthy dividend. I think it was Bain Capital that purchased it. I imagine they have cut costs and drained the company through paying themselves dividends and increasing debt. I guess you have to look at the numbers in the prospectus but I imagine they will be asking for top dollar for a company that has now maxed out its debt levels.

Although the future looks bright for MYOB and Xero as Xero has made popular paying $300 a year for your accounting software rather than paying $300 for five years after which time you are probably forced to upgrade.

[minimoke]

But you would of bought the license in the first place?

And when it is no longer suitable (ie. needs to be updated) will you move to MYOB online version (the easier migration??) or to Xero, or to excel?

Yes, I did buy original licence years ago. Product still works but it never was the most intuitive.

Once I have a greater need it's off to open market. I'm not totally sold on "cloud" (surely simply off site servers?). I'd look at xero as feel no particular brand loyalty.

Actually, my experience with their other product would steer me away from MYOB.

[RGR367]

http://www.businessinsider.com.au/asic-has-raised-questions-over-myobs-ipo-documents-2015-4

[winner69]

http://www.businessinsider.com.au/asic-has-raised-questions-over-myobs-ipo-documents-2015-4

Rob retweeted that earlier today

Maybe he feels happy ...but then maybe his comeuppance will come one day

[RGR367]

Rob retweeted that earlier today

Maybe he feels happy ...but then maybe his comeuppance will come one day

Rob? You meant Rod as in Rod Drury, right?

[minimoke]

I've received a Priority Offer but no discount on price. I'll at least have a look through the prospectus

[winner69]

In the SMH

Why you should avoid the MYOB float

http://www.smh.com.au/business/intelligent-investor/why-you-should-avoid-the-myob-float-20150420-1mp1zc.html

Rod says 'ouch' on his tweet

[Aaron]

I've received a Priority Offer but no discount on price. I'll at least have a look through the prospectus
I received the priority offer too but maybe I didn't read the links properly. It asked for an amount I wanted to buy then I needed to declare I had read the prospectus without giving me the opportunity to access the prospectus what a f**king waste of time.
Are there any links to the prospectus I am interested to compare the offer to the company they compulsorily acquired from me years ago.
I know the prospectus has been lodged with the ASX but I have real trouble navigating their website.

[Banksie]

https://www.myobshareoffer.com.au and do the country verification, accept all the blah - blah then before you pick one of the 4 offer types there is a button to download the prospectus, you have to scroll down the pages a bit.

[Harvey Specter]

Its getting slammed in one of the Ozzie papers as any follower of Drury or Andy Lark on Twitter would know.

[Aaron]

https://www.myobshareoffer.com.au and do the country verification, accept all the blah - blah then before you pick one of the 4 offer types there is a button to download the prospectus, you have to scroll down the pages a bit.
Cheers Banksie. Although what is the likelihood of me getting round to properly reading the prospectus (all 222 pages) if I can't even read a couple of web pages.

[minimoke]

For those who have read the prospectus, can you tell me what the R&D (software development) spend as a % of revenue has been over the last few years?
You will need to do the detailed math but:
At page 11. Over $100m spent over the past three years.at page 42 money going to sme and enterprise solutions.

At page 66.y2012 $258m total revenue. 2013 $275m, 2014 $299m

[winner69]

Great success at upper end of the range $3.65

http://www.smh.com.au/business/markets/myob-raises-833m-in-australias-biggest-ipo-of-2015-20150501-1mxj2w.html

[Baa_Baa]

Looks to be a very successful IPO. http://stocknessmonster.com/stock-trades?S=MYO&E=ASX
Makes one reflect on the relative value the market places on MYOB vs XRO.


Great success at upper end of the range $3.65

http://www.smh.com.au/business/markets/myob-raises-833m-in-australias-biggest-ipo-of-2015-20150501-1mxj2w.html

[RGR367]

Looks to be a very successful IPO. http://stocknessmonster.com/stock-trades?S=MYO&E=ASX
Makes one reflect on the relative value the market places on MYOB vs XRO.

And just a few days after, looks like it's chasing down to its offer price of AU$3.65 already. Anyone here got conned into it?

disc: not holding

[Baa_Baa]

Not conned, not holding. Just trying to get some perspective, on MYO vs XRO.

How does one rationalise 4.88 x MYO = XRO? (some irony that accounting software providers make humungous losses). MYO raises ~$A830m (nice war chest) for a market capitalisation of $A2.13 billion. MYO might be late to SaaS but they have a feature rich code base to port to SaaS. $A830m should be enough to do that, you'd think?

XRO has about a 1/4 of MYO's investment cash on hand but is 5x times more valued on the ASX. XRO say they're focused on the Aus market, but much louder still they're focused on the big prize, the USA (distracted?). MYO has a perverse advantage now, they can leverage XRO's own strategy of riding the incumbent's marketing (assuming XRO is the SaaS incumbent), now that MYO's seen the SaaS opportunity, every reference by XRO to MYO gives them oxygen. Explain all that, especially why XRO is worth 5x MYO. I don't get it.

If we translate to the UK and the USA, the incumbents aren't making losses, they're very successful entrenched companies, and XRO is taking them on, like David and the Goliath's. Whereas MYO isn't bothering with global domination, has the bigger war chest and is probably focused on retaining market share in Aus and NZ where their beachhead is. $3.65 for MYO seems pretty reasonable, but who would know. If they slow, wound or maim XRO, in market share percentage terms, it looks attractive, albeit buying another heavily loss making SaaS wanna-be.

XRO still seems a minnow in all of these markets by comparison, slugging it out against the incumbents. MYO seems well placed now to stick it up XRO in Aus, if they stay focused. On the other end of the scale, Sage in the UK with their very profitable and successful business seems much better placed to retain market share. Intuit in the USA just seems indomitable. Maybe MYO have a seen an advantage by not going after global domination, and let the international incumbents kill off the domestic wanna-be?



And just a few days after, looks like it's chasing down to its offer price of AU$3.65 already. Anyone here got conned into it?

disc: not holding

[winner69]

BaaBaa, I think you will find that MYOB only have a few million in the bank post IPO

All the cash went to Bain and to pay down debt

Myob market cap $2.1 billion and xero $2.4 billion (aud) so xero not much bigger than myob

[mark100]

BaaBaa, I think you will find that MYOB only have a few million in the bank post IPO

All the cash went to Bain and to pay down debt

Bain didn't sell a single share. But yes, the cash paid down debt.

[winner69]

Bain didn't sell a single share. But yes, the cash paid down debt.

Bain got $127m for the Redeemable Preference Shares they had

Yes, they kept all their Ords