IPO Watch: Plenti becomes the ASX’s latest fintech stock; stumbles 20pc
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The company launched in late 2014 – then known as RateSetter – and has lent out $870 million in loans to 55,000 borrowers.
Plenti has three core integrals – car loans, personal loans and loans for renewable energy projects.
In the last two financial years it has achieved compound annual revenue growth of over 60 per cent. It estimates loan originations in the 12 months to the end of September to come in at $218 million.
With an implied market capitalisation of $280 million in its $1.66 offer price and having raised $55 million, Plenti is the largest IPO in 2020.
It entered backed by Five V Capital, Federation Asset Management and large cap Carsales.com (ASX:CAR).
The Australian Financial Review reports fund managers Regal Funds Management and Wilson Asset Management both bought in at the IPO. The latter joined forces with Bell Potter as corporate advisor for the deal.
The company held a virtual listing ceremony this morning as it entered the bourse.
But it wasn’t the best debut a new ASX listee has had in 2020.
Within two hours into trading the stock had dropped to $1.34 – a fall of nearly 20 per cent.
CEO Foggo said today was a milestone day for his company but also for the broader financial system.
“From day one we have strived to create meaningful value for everyday people by offering simpler, smarter loan and investment products,” he said.
“Listing today is the culmination of the hard work and dedication of so many who believe in our mission: to offer consumers better value by supporting a fairer, more efficient financial system for all.”
The company has told shareholders it will use the proceeds to drive future lending growth in its core lending verticals.