AAP Finance

Fintech Moneyme pops on ASX debut

By AAP Newswire

Consumer lending company Moneyme has had a strong debut on the ASX, with its shares rising as much as 32 per cent.

At 1306 AEDT, just over two hours after they began trading, Moneyme shares were still up 28.4 per cent to $1.605.

The Sydney-based company raised $45 million in a oversubscribed offering underwritten by Morgans Corporate and Ord Minnett.

"We are extremely grateful and proud to have the support of our IPO investors, including many institutional investors who have a deep appreciation of the opportunities presenting for MoneyMe, owing to the increasing use of digital and mobile technology in the consumer credit sector," chief executive Clayton Howes said.

Founded in 2013 by Mr Howes and Scott Emery, Moneyme has offered more than $340 million in loans of $2,100 to $25,000 to more than 80,000 customers across Australia.

The company describes itself as an "agile fintech" that uses a cloud-based platform with artificial intelligence to assess credit risk, and boasts that its loan applications can be completed within five minutes.

It charges annual interest rates of 8.99 per cent to 29.99 per cent on its personal loans, plus an origination fee of $100 to $1,000, and also offers revolving lines of credit.

"Our customer base comprises individuals who are typically account holders with the major banks but may prefer our services for their greater speed, flexibility and convenience," the company said in its prospectus.

It declared a $1.6 million loss on $31.9 million in revenue in the 12 months to June 30, and expects to make a $1.1 million profit on $45.8 million this fiscal year.

Mr Howes and Mr Emery are the major shareholders, with holdings of 29.7 and 28.1 per cent of the company - 50.2 million and 47.6 million shares.

At $1.605 per share that makes their holdings worth $80 million and $76 million, respectively.

Online teaching platform OpenLearning also made its ASX debut after a $8 million IPO, with its shares trading down 15 per cent to 17 cents at 1300 AEDT.

It's been a busy few days for IPOs with 11 different listings since last Friday.

Buy now, pay later company OpenPay is set to float on the ASX on Monday following a $50 million IPO.