Australia-based Fintech firm Credit Clear has reportedly asked investors to value it at around 6x its historical revenue for its planned or upcoming initial public offering (IPO).
Bell Potter, the firm’s broker, shared the new terms with clients on August 25, 2020.
As first reported by the Financial Review, Credit Clear was planning to secure $15 million in capital at 35¢ per share, which would result in about a $64 million enterprise value and a market cap of $79 million.
The Fintech firm said it would use the funds raised to cover various upgrades such as systems development (appr. 8.8 million AUD), business development (appr. 2.1 million AUD), working capital (appr. 2.75 million AUD) and to take care of expenses related to the offer (appr. 1.35 million AUD). This, according to a presentation delivered to potential investors.
Credit Clear’s proprietary technology collects receivables by providing online or digital billing and related communication systems. Established in 2017, the company claims around 800 clients based in Australia and New Zealand. The firm’s customers mainly include businesses focused on the financial services, government, transport, and utility sectors.
Credit Clear revealed that the firm generated $11.2 million in revenue during this year (on a proforma basis), which is almost a million dollars more than the $10.3 million in revenue from last year. However, the firm reported a $1.8 million net loss for FY 2020.
Credit Clear initiated its IPO plans on Wednesday (August 26, 2020) and Bell Potter was calling for bids by Friday. The Fintech company’s shares could begin trading on the Australian Stock Exchange (ASX) by October 2020, if its IPO campaign succeeds.
Credit Clear’s IPO announcement has come as investor appetite or interest in emerging technologies and Fintech listings appears to have increased. Plenti, a non-banking peer to peer lender, and cloud-based captions firm Ai-Media have also introduced their IPOs.
As reported back in November 2017, Melbourne-based Credit Clear had been seeking $10 million through a Series A round for its data-driven and collections platform.
In June 2018, Credit Clear announced that it had raised $8.5 million to expand its payment collection services. Credit Clear’s customers include Transurban, South East Water, Beyond Bank, and Toyota Financial Services.
Billionaires Alex Waislitz and Paul Little have reportedly made investments in the company. Credit Clear noted in January 2020 that it was expecting around $18 million in revenue this year, which may have changed due to COVID-19.