Andrew Ward, the founder of Liquidise, explains that the platform was conceived to help provide liquidity for shareholders and esop holders of unlisted companies. It offers an alternative to listing on an exchange, minus the associated costs such as corporate disclosure, ASX listing fees, and corporate governance. Liquidise is particularly suited for companies valued up to 500 million to 1 billion AUD.
At the heart of Liquidise’s operations is a three-sided marketplace that includes: companies coming onto their share registry, a cash pool funded by family offices, and a wholesale distribution network. The cash pool guarantees liquidity using an automated market maker for price discovery. This ensures shares from shareholders and the employee share plans are purchased. The shares are then distributed through the wholesale network.
With a pipeline of demand for up to $100 million of liquidity, Andrew shares that Liquidise has already completed its first few transactions. He emphasises that the platform is unique in guaranteeing liquidity and enabling instant settlement, made possible by blockchain technology. Andrew envisages that the utilisation of technology and the different use cases, such as Liquidise and others, indicate a bright future for the industry.
Published by Ausbiz: https://ausbiz.com.au/media/liquidise-solving-the-liquidity-squeeze-for-private-companies?videoId=35487