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Plenti (previously RateSetter) has listed on the Australian Securities Exchange (ASX) under the ticker code "PLT". While it's too late to invest in the IPO itself, you now have the opportunity to buy Plenti shares after it lists on the stock market on September 23, 2020.
Plenti is a peer-to-peer digital lender and investments firm with a focus on personal, automotive and renewable energy lending.
Plenti's IPO was underwritten by lead managers Bell Potter and Wilsons and it's set to list on the ASX on September 23 under PLT. The suggested IPO share price was $1.66 and the total number of shares under the offer was 33.1 million.
The offer itself is expected to raise $55 million, which will go towards growing its automative lending facility and to developing new product features.
|Plenti IPO key statistics|
|Total number of shares available under the offer||33.1 (millions)|
|Proposed ASX code||ASX: PLT|
|Target market cap||$280.3 million|
|Offers open to broker and Plenti customers||7 September|
|Broker firm offer closes||14 September|
|Expected listing on ASX||23 September|
|Expected despatch of holding statements||18 September|
|Total share value under offer||$55 million|
Source: Plenti prospectus
You can buy shares in the company once it goes public. Here's what to expect of the investment process:
Since its launch in 2014, Plenti has grown its annual revenue to $41.5 million in the year to June, up from $28 million in FY18/19.
To date, the company has funded around $870 million in loans to more than 55,000 borrowers since it launched in 2014, including institutional and government investors, according to the prospectus. As of 31 July, it has a loan book balance of $400 million.
However, the company has been cash flow negative for the last three financial years. In the year-to-June, it reported a net loss of $16.4 million and $14.2 million the year before.
That being said, we may have hit a peak – net losses in the 12 months to September were $12.8 million. If the IPO is successful, we can expect that gap to close further.
Plenti says there are no dividends on the cards for the near future. Instead, it plans to reinvest all cash flow back into the company, making this a growth play.
COVID-19 presents a number of risks for big and small lenders. The key risk for Plenti is higher-than-expected customer defaults and a drop in investment levels.
Recently, the company updated its lending structure and rebranded from RateSetter to Plenti. The lending restructure introduced new limits on investor rates, which meant investors could no longer set their own rate above a certain level starting from March.
According to Plenti, capping the rates will help to attract a greater volume of creditworthy borrowers and minimise lending rate volatility.
While Plenti might well be the most well-recognised P2P lender in Australia, there are around half a dozen competitors in the market.
Plenti tends to offer lower investment rates (max 6.5%) for lenders however it prioritises risk management with the inclusion of its provision fund which offsets the risk of borrower defaults.
There's also greater flexibility in terms of investment options, with a minimal investment starting at $10 and investment time frames from 1 month.
To find out more about P2P lending, head to our P2P Investment guide.
To buy stock in Plenti, you'll need to open a brokerage account with access to ASX stocks. Compare your options using the table below to find the best fit.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Important: Share trading can be financially risky and the value of your investment can go down as well as up. “Standard brokerage” fee is the cost to trade $1,000 or less of ASX-listed shares and ETFs without any qualifications or special eligibility. If ASX shares aren’t available, the fee shown is for US shares. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
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