Openpay lists on the ASX, following strongly supported $50m IPO News16 Dec 2019

Buy now, pay smarter company, Openpay Group Ltd is proud to announce the successful completion of its Initial Public Offering of new shares and listing on the Australian Securities Exchange under the stock code ASX: OPY. The Company's shares are expected to commence trading on the ASX at 12pm today.

 

The company’s IPO was supported by Investec as financial adviser, Shaw and Partners as lead manager and underwriter, and Clayton Utz as legal adviser.

 

The IPO, which was fully underwritten, was strongly supported by institutional and retail investors. Demonstrating the investor appetite for the Company’s payment technology offering and significant growth potential, the IPO received strong demand with applications significantly exceeding the targeted $50m raising, leading to substantial scaling back of allocations.

 

Proceeds from the IPO will be primarily used to support Openpay’s growth strategies, including working capital to underpin the Company’s target business plans as well as continued investment into increasing the Company’s addressable market through product development, talent acquisition and continued UK expansion, continued enhancement of its technology platform and decisioning tool and receivables growth through increased access to equity funding.

 

Openpay CEO and Managing Director, Michael Eidel, PhD commented, “We are absolutely delighted to see Openpay complete its ASX debut today. The strong support from investors is testament to the strength of the opportunity we see ahead of us. We thank all those long term and new shareholders who have invested in our business."

 

“With our ‘buy now, pay smarter’ approach, we’ve seen strong growth in Australia and have recently launched very successfully in the UK as a first step in our international expansion. Listing on the ASX reinforces our commitment to strong regulation and governance and provides a great opportunity for investors to participate in what we see as a fast-growing, globally relevant Australian company.”

 

The Company’s IPO was supported by Investec as financial adviser, Shaw and Partners as lead manager and underwriter, and Clayton Utz as legal adviser.

 

Market opportunity

Openpay, a payments technology company, provides a platform that allows Customers to better manage cash flow by splitting payments for their in-store and online purchases over time and free of interest from a growing and diverse range of Merchants. Openpay currently services Merchants across four key household spend verticals (consumer retail, healthcare, automotive and home improvement) which collectively represent a substantial market opportunity, underpinned by the following characteristics: these sectors are large and growing, and in Australia totalled $366.6 billion in sales during FY19; and reflect important aspects of a household’s day-to-day budget.

 

Openpay’s BNPL offering is relevant to many other verticals where consumers may wish to stagger repayments.

 

Openpay’s market opportunity was further expanded in June 2019 when the Company entered the United Kingdom. Openpay believes the United Kingdom currently has lower levels of BNPL adoption and represents a significantly larger market than Australia (based on relative total consumer retail sales for FY19).

 

About Openpay

Openpay Group Ltd (ASX: OPY) is a well-established player in the fast-growing global market for ‘Buy now pay later’ (BNPL) payment solutions. Openpay partners with merchants to provide BNPL repayment plans to customers in-store, in-app and online. Openpay’s BNPL offering allows customers to purchase what they want and need while spreading repayments over time with no interest costs.

 

By providing flexible payment solutions to customers, Openpay’s BNPL offering also facilitates increased transaction values and conversion rates for merchants at checkout.

 

Download media release: Openpay lists on the ASX

 

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