Netwealth Group Ltd (ASX: NWL) has joined other investment platform providers Hub24 Ltd (ASX: HUB), Praemium Ltd (ASX: PPS) and Onevue Holdings Ltd (ASX: OVH) on the ASX today.
The share price opened on heavy trading at $4.88 and is up 5.3% to $5.14, after trading began on the exchange at midday.
In the competitive investment platform space, Netwealth will be relying on its culture for innovation to succeed.
In what is one of the biggest listings of the year, the company is offering 71.3 million shares at $3.70 to raise $263.8 million.
Netwealth offers an investment platform that provides portfolio administration, and can run managed accounts that are gaining traction with financial advisers.
The company was founded in 1999 and has $14 billion in funds under management + administration (FUMA), with 2,000+ advisers using the platform.
In total though Netwealth has only 1.7% of total funds under administration (FUA) in the wealth management market compared to the bigger bank platforms like BT Panorama, which is owned by Westpac Banking Corp (ASX: WBC).
The more agile investment platform companies can respond quicker to adviser feedback about features, which is a major factor in which platform advisers will use.
