IPO Watch: Shopping rewards platform Cashrewards becomes the latest IPO to rise on debut
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The IPO of online shopping rewards platform Cashrewards (ASX:CRW) has resulted in a 15 per cent gain this morning.
The company provides cashback offers to customers of its retail partners. It claims to be the largest ecosystem of its kind in Australia.
Merchant partners, totalling over 1,500, include brands such as Apple, Amazon, eBay, Microsoft, Dan Murphy’s and Chemist Warehouse.
Cashrewards has 800,000 members and has delivered $2.3 billion of Total Transaction Value across its ecosystem since its inception in 2014 – translating to over $55 million in “cash back”.
It is also the first ASX-listed company to pledge part of its equity to charity – having joined the Pledge 1% movement – and is 19 per cent owned by ANZ Bank.
The Cashrewards IPO raised $65 million at $1.73 per share. Of this $45 million was through the issue of new shares and the other $20 million came from a sell down from existing shareholders.
Shares opened at $2.00 per share – a 15 per cent premium.
Cashrewards CEO Bernard Wilson declared that his company’s IPO marked “an exciting new phase”.
“We believe that operating at the intersection of technology, e-commerce, rewards and financial services creates the opportunity for significant growth which we will pursue with prudent and thoughtful investment of the proceeds of the IPO,” he said.
In its prospectus Cashrewards also noted that COVID-19 has led to a rise in consciousness among consumers as well as a desire for personally curated and seamless experiences.
“Cashrewards proposition enables members to save more shopping with brands they love with minimal effort and increasing personalisation,” it said.
Cashrewards is hardly alone on the ASX. Its IPO occurred only a week after the listing of New Zealand-based consumer engagement platform Plexure (ASX:PX1) which offers consumers one-on-one offers through their mobile devices.
This morning, the company also announced it experienced strong momentum during the December quarter. This was particularly true in recent days with the Black Friday and Cyber Monday shopping events.
It also noted the re-opening of domestic borders and consequential rise in domestic travel bookings could help it further.