PINCHme, a website that sends out free samples in return for reviews and personal data, is raising $8 million in an initial public offering to help drive membership growth.

A New York-based company started in Australia in 2012 by former hedge fund manager Jeremy Reid, PINCHme “intelligently matches” consumer brands with PINCHme members who have provided “comprehensive personal data about themselves and spending habits”.

Members (who have to live in the US) receive free samples which they are then asked to rate. The brands receive “detailed insights, product reviews, feedback and social media engagement to drive sales uplift”.

PINCHme says it is also able to “further monetise its member audience through performance-based online advertising” including third party ads and surveys.

PINCHme wants to raise $8 million selling 16 million shares at 50c each. About 117 million shares will be on issue after listing, valuing the business at about $60 million.

(Technically the IPO is selling CHESS depository interests or “CDIs” which are used as a proxy for trading foreign shares on the ASX.)

After listing, Mr Reid will be the major shareholder controlling 13 per cent of the company.

The former manager of hedge fund Everest Babcock & Brown — who had some challenging times after the GFC — will also pocket a substantial salary of $US395,000 — equivalent to more than $A550,000.

Carsales.com founding chairman Wal Pisciotta will hold just short of 11 per cent and Josh Liberman’s LJCB Holdings will have 12 per cent.

Company president Adam Caplan also gets a nice salary of $US375,000 along with a 3.7 per cent stake.

The IPO funds will go towards member recruitment, product development and marketing.

PinchME has been around since 2012. It’s lost more than $31 million over that time and is not yet profitable — though it now has 45 clients including the likes of Nestlé, Johnson & Johnson and Procter & Gamble.

Its prospectus reported a loss of $5.4 million in the last financial year from revenue of $10.4 million.

It’s hoping to list on October 16 under the ASX code PIN. The offer, managed by Sternship Advisers, closes October 5.

 

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