Payright completes successful IPO and commences trading on the ASX

December 23, 2020

Australian-based buy now pay later (BNPL) provider of choice for higher-value purchases, Payright Limited, (ASX: PYR) (‘Payright’ or ‘company’), is pleased to announce the successful completion of its Initial Public Offering (IPO) of new shares, and the company’s listing on the Australian Securities Exchange (ASX). The company’s shares are expected to commence trading on the ASX under the code ‘PYR’ at 11am (AEST) tomorrow.

Business Update to end of November 2020 – Highlights  

  • Payright lists on the ASX following its successful IPO that raised $18.5 million.
  • The successful IPO follows the company’s oversubscribed pre-IPO raise of $7m, in the form of convertible notes.
  • Gross Merchandise Value (GMV) across Australia and New Zealand was up 44% to $16.1 million in the September quarter, versus the June quarter.
  • Strong momentum continues into the current quarter-to-date with GMV up a further 42% for the two months ending 30 November, versus the first two months of the September quarter.
  • Total Customers are up 64% year-on-year to more than 40,000.
  • Combined raisings of more than $25 million from the company’s IPO and convertible notes issue is enabling Payright to accelerate its growth strategy. This includes more than doubling its sales team over the past two months, positioning the company well for growth for both the near and longer term.
  • As a consequence of increased activity levels, Payright called a further (and final) $4.0 million tranche for Series 6 of the Company’s Loan Note Program. The company is now in discussions with the Placement manager to launch its Series 7 Loan Notes in the new year.

About the IPO

Payright raised $18.5 million through the issuance of 15.4 million shares at $1.20 per share, resulting in an implied market capitalisation of ~$107 million at listing.

Strong appetite for Payright shares through the IPO indicates investors’ confidence in the company’s differentiated offering and growth prospects, including Payright’s ability to keep growing the volume and quality of its merchant and customer bases across industry segments.

Payright is committed to positioning itself as the ‘go-to’ BNPL provider in Australia and New Zealand for ‘considered purchases’ of greater than $1,000. This strategy involves leveraging its strength in its current sectors, as well as expanding Payright’s highly scalable platform.

Funds raised from the IPO will be used primarily to support Payright’s growth plan across the following key areas:

  • ongoing expansion in both the Australian and New Zealand markets
  • consumer acquisition
  • enhanced technology capability

Payright Chair, Paul Cowan, said: “With the IPO process now completed, Payright’s focus as a listed company will be on growing its reach and presence in its core markets of Australia and New Zealand, complementing its ‘Merchant First’ strategy with a dedicated customer acquisition strategy, and enhancing its technology platforms to improve the user experience and drive customer engagement across its target industry sectors.”

Co-CEO, Myles Redward, said: “We’re committed to leveraging our competitive advantage in funding transactions over $1,000 across our target market and into specific industry sectors such as health and wellbeing, education and home improvement to attract and win new merchants, as well as increasing the number of Payright customers shopping with our existing merchants.”

Co-CEO, Piers Redward, said: “Our customer acquisition strategy will focus on direct-to-consumer marketing campaigns, in conjunction with marketing campaigns focusing on merchants. We will look to grow our merchant partnerships via channel groups and market influencers to build awareness of and engagement with Payright across our target sectors.”

Market opportunity

Payright specialises in higher-value, more considered purchases between $1,000 and $20,000, with an average transaction value of approximately $3,000. This represents a key point‑of‑difference in a rapidly growing sector. Payright’s current portfolio mix spans six core industry sectors across retail, home improvement, health & beauty, photography, education and automotive.

Payright believes the BNPL market for transactions over $1,000 in New Zealand is less competitive relative to Australia, with a number of sectors continuing to use credit card-based technologies. This represents a significant opportunity for Payright to assist businesses seeking a consistent solution across both geographies. Payright intends to grow its market position in New Zealand and believes this will further strengthen its position in Australia, particularly in relation to merchants which operate across both geographies.

To further enable the company’s growth, Payright intends to develop integrated solutions with technology platforms including ecommerce, marketplaces and point of sale software.

Financial reporting

Payright’s first statutory reporting as an ASX listed company will comprise its interim results for the six-month period to 31 December 2020, due for release by 26 February 2021.

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