IPO Watch: Fintech Propell gains 40 per cent on its ASX listing
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Propell (ASX:PHL) has become the third IPO in as many days this week to gain on debut.
While Propell hasn’t gone quite as far as its immediate predecessors, it has nonetheless gained.
The fintech aims to help SMEs with their cash flows offering forecasting tools, credit options and instant invoice payment solutions.
Propell raised $5 million at 20 cents per share. Shares climbed 40 per cent higher on debut at 11am (AEST) to 28 cents.
Propell founder and CEO Michael Davidson said this morning that the IPO marked the next stage of growth for his company.
“We already have strong customer growth in a very large addressable target market,” he declared.
“The IPO will allow us to both expand the platform’s offerings and reach new customers within this market.
“I’m excited to share in this next stage of the Propell story with both new and current investors – as well as our highly experienced board, management team and staff behind the company.”
While Propell is relatively young, Davidson told Stockhead last week the decision to IPO at this time was a right one.
“We decided on going public because it allows us to raise the capital this time – and our decision has been validated we were six times oversubscribed for this IPO round – but it sets us up for the next phase (of growth),” Davidson said.
“If we do deliver on our plans and hit some of these big milestones we’ll be strong to raise in the future.
“And listing gets you tangible benefits you don’t get (while being) private.
“There’s a lot of credibility being listed and a recognition from customers and businesses that listed companies are forward which is critical in the finance space where people are trusting you with their money.”