Tel Aviv-based Splitit Payments (ASX: SPT), which raised A$12 million (NIS 31.6 million) in its IPO on the Australian Securities Index (ASI) at A$0.20 a share, reflecting a company value of A$54 million, saw its share price soar 90% in its first day of trading, thereby increasing its market cap to A$96 million (NIS 253 million).
Splitit provides payments solutions and enables buyers to pay in monthly installments with no interest, even where such an option does not exist. The company, founded in 2008, began its activity in 2012 after registering patents. The main shareholders in Splitit after its IPO are Victoria Neil Krain with a 21% stake and company founders CEO Gil Don (4.7%) and Alon Feit (10.4%). Don has experience in IT and at Dell EMC, while Feit's background is in credit and insurance; he formerly managed Shufersal Finances.
Splitit's revenue totaled $272,000 in the first half of 2018, 4.6% more than in the corresponding period in 2017. The company reduced its net loss from $3.4 million to $1.2 million.
20 Israeli companies on the ASX
The company said that it had carried out 118,000 transactions involving an aggregate A$94 million as of the end of 2018. Splitit plans to use the money raised in its IPO to bolster its sales and marketing activity, build distribution channels, and expand into new markets. According to Splitit's prospectus, 39% of the money raised will be used for sales and marketing efforts and 13.5% will be used for research and development. IPO-related costs amounted to A$1 million.
"The IPO is a milestone for Splitit. We are proud that investors recognized our contribution to industry as a leading company in the payments solution market," Don said. "We will take advantage of the opportunity to expand the company's capabilities, and we will continue creating value."
20 Israeli companies in various areas of technology are listed on the ASX. The largest are Audio Pixels Holdings (ASX: AKP), which develops high-performance loudspeakers, with a A$637 million market cap, and satellite company Sky and Space Global (ASX: SAS) (SAS), with a A$102 million market cap.
Published by Globes, Israel business news - en.globes.co.il - on January 29, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019