The Splitit Ltd (ASX: SPT) share price is up 11% today to $1.50 and up an incredible 750% since hitting the ASX boards back in January 2019 after an initial public offering at just 20 cents per share.
No doubt subscribers to this IPO will be punching the air at the stag profits earned on this IPO as the buy-now-pay-later runs hot with hype.
However, Splitit's 750% return is below that of AfterPay Touch Group Ltd (ASX: APT) since its IPO, with AfterPay being on the ASX boards far longer and boasting a credible operating history.
While another rival in the space is Z1p Co Ltd (ASX: Z1P) that is also growing strongly thanks to the sector's popularity with retailers and consumers.
Splitit is reportedly headquartered in New York, but has research and developments operations in Israel and offices in London, alongside its stated intention to expand into Australia.
According to its financial report for the year ending December 31 2018 it had revenue of just $790,000, across 205 active merchants and 118,000 shopper accounts. These kind of numbers are not likely to have AfterPay's management quaking in their boots, but Splitit share owners won't be worried given it now boasts a market value around $260 million. As you can probably guess, I'm not a buyer of Splitit shares at today's valuation.
