The ASX’s third largest tech company will join the index’s top 50 index as its share price soars in recent years.
The value of Brisbane-based software company Technology One has boomed almost 400 per cent over the past five years and more than 65 per cent over the past year, lifting its market cap to $12.3b.
It will knock Penfolds-owner Treasury Estate out of the index when it join the ASX 50 on September 22 and sit near major companies including retail giant JB Hi-Fi and The Lottery Corporation.
Technology One’s annual recurring revenue rose 21 per cent to $511m in the six months to March 31 while its profit grew 31 per cent to $63m.
It also upgraded its forecasted performance for the full 2025 financial year and is expected to extend its run as one of the most reliable ASX-listed tech companies.
The company has made a name for itself over the past two decades as its software is used to run government departments, local councils and universities.
Technology One’s jump comes as many index’s across the ASX shift to welcome new companies and dump poor performing ones.
DroneShield, an Australian defence company which experienced a 140 per cent share price jump over the past 12 months, is one of the nine new companies set to join the ASX 200.
Newly re-listed airline Virgin Australia will be added to the ASX 300 index after rejoining the market following its 2020 fall into administration.
The carrier’s ascent into the index comes as Star Entertainment Group is removed.
The casino operator has been plagued with poor liquidity and was purchased by US company Bally’s Corporation and local publican Bruce Mathieson earlier in the year.
Star’s share price has fallen almost 60 per cent over the past 12 months and was suspended between late February and early April for failing to publish its half year results.
Monash IVF was also removed from the ASX 300 after its share price dropped almost 40 per cent over two separate scandals where the wrong embryos were placed in the wrong women at its clinics.
