Hey all, I just finished writing a pretty comprehensive analysis with an accompanying financial model on the Raiz IPO.
While I think it's great to see more tech companies listed on the ASX, only if they are legitimately managed and fairly valued. Right now I don't believe this is the case.
Red Flags:
CEO and Founder being paid over $500,000 per annum + $1m cash bonus on IPO
Platform built in US and brought to Australia without a tech team.
No Competitors. Untruthful. A lack of respect for your competitors shows a lack of respect for your own business.
The model just doesn't add up. A more reasonable valuation range at this point in time is likely between $40–60 million
Investing is about keeping your emotions out of your decisions.
