Payright lodges prospectus for $10m IPO

Payright lodges prospectus for $10m IPO

After recently closing its pre-IPO round over-subscribed, Australian-based provider of higher price-point buy now pay later solutions, Payright Limited, has lodged a prospectus with ASIC to list on the Australian Securities Exchange via an initial public offering.

The offer is underwritten to raise gross cash proceeds of approximately $10 million, with the ability to accept oversubscriptions to raise a further $10 million, based on an offer price of $1.20 per share (“Offer Price”/“Offer”). The total number of new shares to be issued by Payright under the Offer before oversubscriptions is 8.3m shares. Assuming all oversubscriptions are accepted under the Offer, Payright will issue up to 16.7 million new shares at the Offer Price, for total cash proceeds of approximately $20.0 million. At completion of the Offer, a maximum of 90.3 million shares will be on issue, assuming all oversubscriptions are accepted. The Company’s expected market capitalisation at the Offer Price and before oversubscriptions is $98.4 million, and $108.4 million if all oversubscriptions are accepted.

Payright was founded in 2015 by Co-Founders and Joint Chief Executive Officers Myles and Piers Redward who, together, have more than 30 years’ experience in the retail finance and payments sectors, including in credit and risk. The Company specialises in providing merchants in Australia and New Zealand with both in-store and online BNPL solutions for the benefit of their customers, with a focus on higher-value, more considered purchases between $1,000 and $20,000 (and an average transaction value of approximately $3,000).

Payright’s business model contrasts with the majority of BNPL providers which are focused on the micro-ticket, sub-$1,000 segment of the market. The Company views its speciality in higher-value, more considered purchases of more than $1,000 as a key point of difference in a rapidly-growing sector, with larger transaction sizes lending themselves to a more diversified merchant mix, and with Payright’s loan book weighted heavily towards high credit-worthy customers.

Payright has a network of approximately 2,400 merchants and more than 30,000 customers across Australia and New Zealand. The Company’s merchant partners span a diverse range of industry sectors which are generally under-serviced by the BNPL sector, including:

  • Retail: lifestyle, sports, homewares and outdoor equipment;
  • Home improvement: including solar, internal and external furnishings, flooring, fencing, roofing and trade services;
  • Health and wellbeing: including beauty, fitness and lifestyle, cosmetics, dental, veterinary and audiology;
  • Photography: including photographic shoots, artwork, equipment, printing and services;
  • Education: including online and further education courses; and
  • Automotive: including after-market automotive accessories, tyres, vehicle repairs and servicing.

Payright has achieved significant growth across key business metrics in FY20, with revenue and gross merchandise value (GMV) increasing 188% and 64% respectively. The company’s customer numbers rose by 115% for the same period, and credit arrears remains among the industry’s lowest.

Payright Chair, Paul Cowan, said the Board and management team were excited by the prospects for the Company as it seeks to build on its strong performance to date and leverage its differentiated offering in a rapidly-growing BNPL market.

“Payright has become a provider of choice for many businesses across a host of industry sectors in Australia and New Zealand, and with the merchant sectors targeted by Payright representing an addressable market of approximately $287 billion, there is significant scope for the Company to keep growing its merchant network and customer base, and to keep enhancing its technology capability and customer experience.”

Mr Cowan said that the Offer will enable Payright to fund its growth strategy, and provide fresh working capital and equity support for the Company’s growing receivables book.

Payright Co-Founder and Joint Chief Executive Officer , Myles Redward, said the Company’s highly-scalable business model was driven by a clear purpose to offer “simpler, better payment solutions for higher price-point purchases in sectors that were under-serviced by BNPL providers.”

“We recognise the importance of creating shared success for our merchant partners, and offering a compelling value proposition for their customers. Merchants are attracted to Payright because of the larger average transaction size available through our offering, and the opportunity it creates for incremental sales”, Mr Redward said.

Payright Co-Founder and Joint Chief Executive Officer, Piers Redward, said that with the majority of BNPL players focused on the sub-$1,000 segment of the market, the Company was focused on strengthening its competitive market position.

“Our analysis indicates that 55% of consumers want a BNPL payment option for purchases exceeding $1,000, and 43% say having a BNPL option at or above this price-point would help them with budgeting. We intend to capitalise on this opportunity through our merchant and customer acquisition strategies, and our ongoing investment in our e-commerce and technology capability”, Mr Redward said.

Payright will apply to the ASX for admission to the official list of ASX and quotation of shares on the ASX, under the code ‘PYR’, within seven days after the prospectus date of 11 November 2020.

It is important that prospective investors read the prospectus carefully and in its entirety before deciding whether to invest in the Company. During the offer period, a paper copy of the prospectus is available free of charge to any person in Australia by calling the Payright IPO Information Line on 1300 288 664 within Australia, and +61 2 9698 5414 (outside Australia) from 8:30am to 5:00pm (Australian Eastern time) Monday to Friday (excluding public holidays). The prospectus is also available in electronic form to Australian residents, via the offer website at

The offer is being arranged, managed and underwritten by Bell Potter Securities Limited.

Key dates

Prospectus dateWednesday, 11 November 2020
Retail Offer opensThursday, 19 November 2020
Retail Offer closesThursday, 3 December 2020
Settlement of the OfferFriday, 18 December 2020
Allotment of Shares under the OfferMonday, 21 December 2020
Expected commencement of ASX trading on a normal settlement basisWednesday, 23 December 2020