Thanks, got it - here is the articleConsumer lending company...

Thanks, got it - here is the article

Consumer lending company MoneyMe is considering donning the hard hat for a trip to equity capital markets.

Fund manager sources told Street Talk Barrenjoey’s bankers were crossing investors for a MoneyMe deal on Monday night, testing appetite for a potentially painful $20 million equity raising.

MoneyMe’s expected to use any funds raised to help grow its loanbook. The company’s fresh off the acquisition of SocietyOne (shopped around by Barrenjoey co-chairman Matthew Grounds in its better days), and has been heavily marketing to institutional investors ahead of a mooted raising.

The marketing included last month’s 58-page “investor showcase presentation”, which couldn’t stop the company’s shares from falling. The stock’s dropped 67.5 per cent this year, and nearly 20 per cent in the past five trading days.

The fall makes it an inopportune time to go to skittish investors for fresh capital, however it clearly wants its capital injection.

MoneyMe’s been around since 2013, and listed via a $45 million initial public offering in 2019. It sells personal loans and revolving credit facilities to borrowers, and has a buy now, pay later product called Moneyme.

Earlier this year, it killed plans for a $20 million institutional placement and instead had Pacific Equity Partners help bankroll its acquisition of non-bank lender SocietyOne.

The combined business was tipped to have $150 million revenue.

MoneyMe made $2.25 million on the EBITDA line in the 2021 financial year, from about $53 million revenue. It had a $160 million market capitalisation at Monday’s close.