The company behind the Acorns investing app will IPO on the ASX soon

A squirrel chews on an acorn. (Photo by George Rose/Getty Images)
  • Raiz Invest has released a prospectus for the issue of shares.
  • The company — previously known as Acorns Australia — plans to raise around $15 million.
  • Raiz Invest will apply to list on the ASX by next Wednesday.

Raiz Invest — previously known as Acorns Australia — has lodged a Prospectus with corporate regulator ASIC to issue shares and apply to join the ASX.

The company re-branded as Raiz Invest in April this year, following the purchase of a controlling stake by a local asset manager in February.

It was previously operated as part of a joint venture arrangement with Acorns US, which launched in Australia in February 2016.

The fintech app allows users to put their spare change to work by rounding up the difference on purchases and investing it.

Raiz Invest plans to raise approximately $15 million via the issue of 8.4 million fully paid ordinary shares at an offer price of $1.80.

The share offer will give the company an indicative market capitalisation of around $120 million:

Applications to participate in the offer must be for a minimum of 3,000 shares — at a value of $5,400 — and then in multiples of 500 shares ($900) thereafter.

“Since its launch in Australia in February 2016, Raiz has grown rapidly and has approximately $170 million in funds under management and over 155,000 active monthly customers,” chairman Tony Fay said.

“As Australians are amongst the highest per capita users of smartphones in the world, the Board believes that Raiz customers will continue to develop and mature in the future by accessing a multitude of financial services through the Raiz platform.”

“The Board believes that the funds raised from the Offer will enable the Company to advance its business strategy, meet its regulatory requirements and gain access to a broader investor base.”

Around one third of the money raised will go towards an international expansion strategy:

The company said $2 million of the money raised will go towards a one-off cash payment for executives who have played a key role in establishing the Australia business.

$1 million of the cash proceeds will be paid to George Lucas, Raiz Invest’s current CEO.

“In the more than two years that Raiz has been in operation, it has received overwhelming positive support and feedback from its customers about its affordable service, reflected in the strong growth in active customers and funds under management that we have achieved,” Lucas said.

“Our philosophy of investing small amounts regularly has resonated with our customer base. Raiz makes this happen automatically, in the background of life, reducing some of the stress associated with managing your finances.”

Following the release of the prospectus yesterday, the company plans to apply for admission to the ASX by next Wednesday, May 16.

You can read more in the prospectus here.

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