Comparables

Interesting.

UNL has 3x the revenue, has some of the world's leading insurers as customers and is on track to be cash flow positive - yet is valued at just 5% of Raiz?

Bell Potter pitches fintech Raiz Invest for $120m listing

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    The initial public offerings are starting to flow thick and fast out of Bell Potter Securities.

Next up is a $15.1 million raising for fintech Raiz Invest Ltd which, if successful, would see the company list with a $119.2 million market capitalisation next month.
Raiz Invest is the new name for Acorns Grow Australia, a micro-investing app out of the United States that has been operating locally since February 2016.

It is best known for its "round up" offering, which enables customer to invest their virtual spare change automatically. It says its app also acts as a personal finance assistant for users and allows customers to make lump sum deposits into managed funds and other financial products.

Raiz Invest makes money via monthly maintenance fees, account fees and advertising on its app.

It told potential investors it already has more than 155,000 paying customers and 600,000 app downloads. It recorded $1.04 million revenue and a $2 million loss in the first half of its 2018 financial year.
Bell Potter is seeking to sell 8.4 million new shares at $1.80 each to raise $15.1 million, according to terms sent to potential investors. No information was given in terms of valuation metrics.  
Funds raised have been pegged for costs associated with meeting regulatory requirements, international expansion, rebranding and working capital.
Bell Potter has started marketing the company via its broker network and has booked fund managers for a roadshow starting next week. It is calling for bids by Friday, so it can underwrite the offer ahead of prospectus lodgement next week.

Raiz Invest is slated to begin trading on a normal settlement basis on June 21.