The PEXA Group Ltd (ASX: PXA) share price has risen nearly 8% to reach a new high of $18.47 since its initial public offering (IPO) on 1 July.
Shares in the online property exchange operator have since retreated to $18.24 at the time of writing, up 3.64% on Friday's close. For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently 0.14% higher.
Today is the first day PEXA shares can be traded as normal after the company confirmed it has met all the conditions necessary for normal trading. Previously, the PEXA share price was trading on a 3-day deferred basis.
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PEXA share price profile and history
PEXA is an electronic conveyancing company with arguably a near-monopoly on the market. The company boasts that 80% of all real estate transactions in Australia are conducted through PEXA. As the cost of using its service is passed on from its customer base (lawyers and real estate agents) to their clients as a business cost, PEXA is somewhat immune to any potential price-based competition.
Link Administration Holdings Ltd (ASX: LNK) floated PEXA on the ASX with an initial market capitalisation of around $3 billion (now around $3.2 billion at current market price).
Link retains a 42% interest in the company while the Commonwealth Bank of Australia (ASX: CBA) owns 23.9% of shares.
On the day of its IPO, the PEXA share price sank to a low of $16.40 before recovering to end relatively flat. Since then, investors appear to be backing the newly-listed company with its shares on the march upwards.
