Raiz Invest — previously known as Acorns Australia — has lodged a Prospectus with corporate regulator ASIC to issue shares and apply to join the ASX.

The company re-branded as Raiz Invest in April this year, following the purchase of a controlling stake by a local asset manager in February.

It was previously operated as part of a joint venture arrangement with Acorns US, which launched in Australia in February 2016.

The fintech app allows users to put their spare change to work by rounding up the difference on purchases and investing it.

Raiz Invest plans to raise approximately $15 million via the issue of 8.4 million fully paid ordinary shares at an offer price of $1.80.

The share offer will give the company an indicative market capitalisation of around $120 million.

Applications to participate in the offer must be for a minimum of 3,000 shares — at a value of $5,400 — and then in multiples of 500 shares ($900) thereafter.

“Since its launch in Australia in February 2016, Raiz has grown rapidly and has approximately $170 million in funds under management and over 155,000 active monthly customers,” chairman Tony Fay said.

“As Australians are amongst the highest per capita users of smartphones in the world, the Board believes that Raiz customers will continue to develop and mature in the future by accessing a multitude of financial services through the Raiz platform.”

“The Board believes that the funds raised from the Offer will enable the Company to advance its business strategy, meet its regulatory requirements and gain access to a broader investor base.”

Around one third of the money raised will go towards an international expansion strategy:

The company said $2 million of the money raised will go towards a one-off cash payment for executives who have played a key role in establishing the Australia business.

$1 million of the cash proceeds will be paid to George Lucas, Raiz Invest’s current CEO.

Following the release of the prospectus yesterday, the company plans to apply for admission to the ASX by next Wednesday, May 16.


This article first appeared on Business Insider Australia, Australia’s most popular business news website. Follow Business Insider on Facebook or Twitter.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Any documents linked or referred to in this article were not selected, modified or otherwise controlled by Stockhead.

Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in the documents linked or referred to in this article.