‘Facebook for investors’: Selfwealth launches $7.5m initial public offering
Online share trading platform and investment community Selfwealth has pushed the button on its initial public offering as it looks to expand its suite of offerings and position itself as the Facebook of investing.
Selfwealth describes itself as a potentially disruptive brokerage service with a peer-to-peer portfolio construction functionality in the offer document lodged with the corporate regulator last week. The platform provides a flat fee share trading of $9.50 per parcel of shares and allows members to publish and monitor share trades in real time.
The service is looking to capitalise on the rise of the self directed investor while the IPO should benefit from a growing appetite for ‘fintech’ stocks. Selfwealth’s target audience are the thousands of self managed super fund operators who control one-third of the $2.3 trillion in superannuation savings.
It is understood that Selfwealth monitors 20,000 portfolios and executes the trades of 1500.
Selfwealth is seeking to issue 37.5 million shares at 20¢ a share or $7.5 million. The offer is open until October 25 and is expected to begin trading on the ASX by November 15 with market capitalisation of up to $26 million.
Selfwealth has three primary income streams, namely revenue from online trading, interest on funds held in Selfwealth’s cash account and subscriptions to Selfwealth Premium or the peer-to-peer portfolio construction network.
The company will look to offer business to business services in the near future, allowing professional firms to promote themselves to its network of investment enthusiasts.
The company plans to use the funds to ramp up its advertising, marketing and technology development.
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