Tearaway trading newcomer Superhero is rattling the tin for fresh funds and has told potential investors its next stop could be a listing on the ASX boards.

It is understood Superhero’s management team has spent the past few days in front of fund managers, family offices and the like, asking them to tip into a pre-IPO funding round and the chance to get set ahead of a planned sharemarket float.

Investor sources said Superhero was targeting a $20 million to $25 million pre-IPO raising, with proceeds used to fund its move into superannuation and US equities and other growth options.

Superhero, which offers online trading services, is seeking to have the raising wrapped up in the coming week and could seek a listing within the coming 12 months.

It had stockbroker Shaw and Partners helping with the pre-IPO raising, sources said.

Superhero co-founder and CEO John Winters confirmed that meetings with potential investors had taken place this week, but declined to comment further when contacted on Thursday. Winters is a former Shaw and Partners broker, best known for helping float payments group Zip Co.

Superhero’s pre-IPO raising and float plans come after the fintech start-up burst on to Australia’s retail broking scene, offering clients $5 brokerage on share trades and a minimum $100 parcel size.

It told potential investors it had about 35,000 customers at the end of January, sources said.

Superhero timed its entry into the market to perfection, capitalising on growing retail investor participation in Australian and global equity markets that swelled last year as a new generation of young traders took advantage of low-cost online trading platforms such as Superhero and Robinhood.

Its next steps include a superannuation offer that would allow members to self-manage up to 75 per cent of their retirement savings, and a low-cost US trading service for Australian customers.

The pre-IPO raising is understood to represent a minority stake in the business. Existing shareholders include Afterpay’s Nick Molnar and Zip’s Larry Diamond.

Article source: AFR, 4 February 2021