☕️ Design Drama

Good morning.

One of the hottest tech companies to come out of Australia, Canva, has made its way into headlines for a less than rosy reason this time round.

Capital Brief reports that former CFO, Damien Singh, resigned from his role after the company launched an internal investigation amid concerns about inappropriate behaviour. The investigation was launched after an anonymous thread on an external platform, Blind, raised concerns. When informed of the internal investigation Singh resigned immediately, announcing his resignation to staff on Monday February 5.

The timing isn’t ideal for the design software startup, which is currently planning a major US$1 billion secondary stock sale and highly anticipated IPO.

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Market movers

Shares in Fletcher Building tumbled over 8% to $3.38 by close of trading yesterday, after the building supplies company reported a half-year loss of NZ$120 million ($112.7 million), compared to a NZ$92 million profit in the prior corresponding period. The company said the result was heavily burdened by a legacy provision on the NZ International Convention Centre, as well as an impairment and write-down on the Tradelink Australia business. Fletcher also announced that its CEO and chairman will both resign later this year.

Last week Fletcher warned that it expected its results to be hit by further provisions against troubled construction projects for SkyCity in Auckland and at Wellington Airport.

The quick sync

• Austrade boss prepares to slash up to 150 jobs and impose 20% budget cuts amid spending blowouts at the agency. (The Australian)

• AMP’s Alexis George argues the bank is delivering on its vows to investors as it readies for the next stage of recovery. (Capital Brief)

• Liquidators of Forex CT are suing ASIC for the return of $20.1m in fines and costs, arguing the funds should be returned to the victims of the company. (The Australian)

• Uber has unveiled a US$7 billion stock buyback, announcing that its board has authorised the repurchase to return capital to shareholders. (Bloomberg)

• In a recorded conversation, ASIC deputy told chairman she could have ‘destroyed’ him and urged him to repair her reputation among senior business leaders. (AFR)

• UniSuper makes a $1b property play with purchase of industrial site in Melbourne’s Deer Park for $260m. (The Australian)

• UK shares moved higher yesterday on news that CPI held steady in January at an annual rate of 4.0%, less than the expected 4.1% increase.(Bloomberg)

• Global demand for liquefied natural gas is set to surge more than 50% by 2040 according to estimates from Shell. (Wall Street Journal)

Trading floor

M&A

• Downer has hinted at additional asset sales in the coming months, following several divestments of non-core assets. (The Australian)

• Wide Open Agriculture prioritises Buntine Protein, explores sale of Dirty Clean Food. (AFR)

• OMERS adds bid for NSW Land Registry stake, retaining Macquarie Capital as advisors. (AFR)

• Fletcher Building is considering selling the Tradelink plumbing supplies business. (The Australian)

Capital Markets

• Coex Capital seeks $20m funding round for its growth plan. (AFR)

• ANZ is set to raise $1b through the issuance of capital notes to meet its capital requirements. (Capital Brief)

• Touch Ventures reports a $15.4m loss, driven by impairments on its startup investments. (BNA)

• Salus Ventures is oversubscribed for its debut $40m fund focusing on national resilience tech. (Capital Brief)

VC

• Five V Capital announced its eighth Fund IV investment in digital payment and software provider, Fat Zebra. (Five V Capital)

• The Queensland government has unveiled the first five recipients of the $130m Queensland Venture Capital Development (QVCD) fund. (BNA)

People moves

• Vimal Gor exits Trovio, taking the investment team with him. (AFR)

• Magellan Financial Group is rumoured to announce a new CEO when it delivers results today. (The Australian)

Together with Wilsons Advisory

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The watercooler