Pushpay heads for ASX listing

Prepares to raise more capital

New Zealand Stock Exchange listed mobile commerce software developer, Pushpay Holdings has announced plans to launch on he Australian Stock Exchange and, in preparation, says it intends to conduct a capital raising to Australian exempt investors and similar investors in other countries through Ord Minnett.

Pushpay announced in May that it was seeking an ASX foreign exempt listing and says it is now well advanced in the process. It expects to complete the process in conjunction with completion of a private placement in October.

Earlier this year Pushpay engaged a USA-based investment bank to raise a minimum of $US30 million of primary capital from investors in the USA to support its growth strategy. It has now engaged Australia-based Ord Minnett as sole lead manager and book runner to raise approximately $A40 million of new capital through a private placement to exempt investors. Qualified USA-based investors who choose to participate in the placement will be able do so through the USA-based investment bank engaged by Pushpay.

Pushpay says that, once an ASX listing is obtained, it will be able to issue shares to USA-based institutional investors that will be tradeable through the ASX. Current US investors who subscribe for Pushpay shares are subject to additional constraints on their ability to resell the shares through the NZX main board due to legal restrictions in the USA.

Pushpay says it is expecting net merchant growth for the quarter ended 30 September 2016 to exceed net merchant growth of 725 Merchants added in the previous quarter ended 30 June 2016. It also expects average revenue per merchant (ARPM) for the quarter ending 30 September 2016 to increase by more than five percent from $US506 per month in the previous quarter ended 30 June 2016.

The company says it remains on track to reach $US72 million in annualized committed monthly revenue (ACMR) prior to the end of calendar year 2017 and to reach breakeven on a monthly cash flow basis in calendar year 2017.

Pushpay claims to provide mobile commerce tools that “facilitate fast, secure and easy non-point of sale payments between consumers and merchants. The company says it targets merchants that are looking to offer convenient, personalized and intuitive payment solutions to their consumers. It serves three target markets: the faith sector; non-profit organizations and enterprises (both small medium enterprises and corporate organizations).

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