Avantpay chief executive Jamie Twiss remains hopeful the company’s fortunes will recover, after the ‘pay-as-you-go’ start-up made a horror debut on the ASX with its shares falling 44% from its offer price.
The fintech, which is chaired by former Westpac chief executive Brian Hartzer and offers users a payday advance before their typical payday, raised $35 million from investors at $3.41 per share during of an initial public offering at the end of last year.
After a killer first session on the ASX, Beforepay closed at $1.91. This fall reduced the market capitalization of the group to 90 million dollars, against 158.4 million dollars expected.
Beforepay has 139,000 users. In the December 2021 quarter alone, the company issued $77 million in salary advances. Its default rate, which was close to 7% in the December 2020 quarter, fell to 3.08%.
“The market is always going to go up and down…we’re not going to try to guess what the market is doing or what the stock price is doing,” CEO Jamie Twiss told the Sydney Morning Herald and age.
“Obviously we priced the IPO in November and the trading conditions have changed a lot since then.
“Our goal is to run the business on a day-to-day basis, and as we successfully build the business, it’s obvious the market will make up its own mind over time.”
Mr. Twiss went to great lengths to differentiate the company from payday loan products or credit card products: Beforepay does not rotate or rollover debt, and does not charge late fees or interest rates. interest, he explained. A client will only ever be required to repay their initial withdrawal amount, plus a fixed 5% flat fee on top of that, which does not increase over time.
“Our product is a more responsible and very user-friendly way to help people who occasionally need to manage their cash, week-to-week or month-to-month,” Twiss said.