A ‘no commission’ share-trading app from Melbourne just raised $7.3 million and listed on the ASX
Melbourne fintech SelfWealth has floated on the Australian Securities Exchange, raising $7.34 million through an initial public offering.
Based on the $0.20 IPO price, the company has a market capitalisation of $26 million.
SelfWealth operates a share-trading platform that allows users to buy and sell any volume of shares for a flat fee of $9.50 per transaction. No monthly fees are charged, although an optional $20 “premium” tier is available for deeper market analysis and access to a “social investment network”.
The company did not disclose current customer numbers, but founder and managing director Andrew Ward in last year revealed the platform had 3,000 self-managed superannuation fund clients plus 2,500 direct users.
“It is an audacious goal, but within the next 12 months we are hoping to have 100,000 online trading accounts,” Ward said at the time.
SelfWealth raked in $137,000 of revenue for the 2017 financial year, while posting a loss of just over $9.8 million.
Ward, who is a former Commonwealth Bank private wealth director, said that since the startup’s establishment in 2012, he has seen “a shift away from bank- and broker-owned platforms”.
“In our view, the next generation of investors want to work with independents, and ultimately hold control over their own portfolio. And that’s what we give them.”
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