Beforepay has handed its prospectus over to the Australian Securities and Investments Commission ahead of a planned $35 million initial public offering.
Beforepay chairman Brian Hartzer said that the company’s “pay on demand” business model offered a strong value proposition to consumers who would otherwise resort to credit cards as a means of taking control over their financial situation.
Inspired by on-demand services like Netflix and Uber as well as “buy now, pay later” apps like Afterpay, Beforepay offers customers on-demand access to up to $1,000. The company charges a fixed 5 per cent fee, regardless of how much money a customer borrows.
“The high-quality management team has already achieved significant scale and excellent momentum in unit economics,” he said.
Pointing to downward trends for the company’s recent loss rates and costs, Mr Hartzer said that Beforepay’s acquisition and retention figures reflect its broad appeal and the size of the market opportunity.
Since it launched in August 2020, Beforepay has advanced a total of $170 million to customers.
Beforepay said that it has a monthly active user base of 125,500 users and a compound monthly growth rate of 25.3 per cent as of October 2021.
“I’m excited about the future prospects of Beforepay and am pleased to have the opportunity to welcome new investors to share in this exciting journey,” he said.
Underwritten by the joint lead managers Shaw and Partners Limited and E&P Corporate Advisory Pty Limited, Beforepay’s IPO is expected to raise approximately $35 million through the issue of 10.3 million new shares at a price of $3.41 per share.
If all goes to plan, Beforepay is expected to start trading on the ASX from 17 January 2022 under the code “B4P”.
Beforepay CEO Jamie Twiss said that the company has only scratched the surface and that the company’s ASX listing would prime it for its next phase of growth.
“The IPO will enable us to support more customers and to accelerate our growth, both in Australia and potentially overseas,” he said.
