Trading in the share of Israeli payment solutions company Splitit Payment Ltd. (ASX: SPT) began a short time ago, after the company raised $12 million in its IPO. In the eight trading days since then, the company's share price has almost quintupled. The share price in the offering was A$0.20. At the end of today's trading day in Australia, the share price was up 17% on the day to A$0.99, pushing the company's market cap up to A$228 million (NIS 587 million).
Splitit, managed by cofounder and CEO Gil Don, is a fintech company providing payment solutions. It enables purchasers to buy on credit and pay in monthly installments, without paying interest, including in places where this option does not exist. The company, founded in 2008, began its activity in 2012 after registering patents. Splitit had less than $300,000 in revenue in the first half of 2018.
The jump in Splitit's share price today followed the appointment of Nathan Mairs, a former senior executive at Swedish company Klarna, which also provides payment solutions, as VP for sales in the US. The appointment is intended to expand Splitit's global business. Don said that the company was excited about Mairs's appointment, and that he would be an important part of the company's global expansion.
Splitit's IPO prospectus stated that it would use the money raised to strengthen its sales and marketing activity, build distribution channels, and expand into new markets. The company said that it would allocate 39% of the proceeds for marketing and sales efforts. The company's new executive is undoubtedly part of this.
Splitit is one of 20 Israeli companies listed on the Australian Securities Exchange (ASE). It is believed that a number of other Israeli companies are preparing to make offerings there.
Published by Globes, Israel business news - en.globes.co.il - on February 7, 2019
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