The buy now, pay later (BNPL) sector is the ASX gift that just seems to keep on giving. This morning, we reported that BNPL pioneer Afterpay Ltd (ASX: APT) hit yet another new all-time high, this time over $155 a share.
That means the Afterpay share price is now up more than 30% in 2021 so far (and its only February!). We also looked at how the Zip Co Ltd (ASX: Z1P) is also on fire, up 14% today alone.
Over the past few years, BNPL companies like Afterpay and Zip have delighted their shareholders and confounded their critics over and over again. After all, Afterpay is now up more than 1,600% since the market crash in March last year – a real millionaire-maker.
Since BNPL is such a new growth area with an almost limitless runway of growth still in front of it, there tends to be a 'good for one, good for all' attitude. That might be why Zip's strong quarterly update this morning pushed up the share prices of Afterpay and other BPL players like Sezzle Inc (ASX: SZL) and Humm Group Ltd (ASX: HUM) today.
So it will be interesting to see how the ASX's newest BNPL company hits the markets.
Limepay to make ASX debut in 2021
According to The Australian last week, BNPL company Limepay is preparing an initial public offering (IPO) for the ASX in 2021. Limepay was founded in 2016 and had found a niche for itself in an infrastructure platform that its clients can use to offer their own branded BNPL services. That differs from the likes of Afterpay and Zip, where customers have to navigate through the company's platform, rather than the retailers.
The report tells us that Limepay has more than 120 merchants using its platform, including Accor, EB Games and Puma. Property classifieds company Domain Holdings Australia Ltd (ASX: DHG) has also signed on.
According to the report, Limepay is also backed by Woolworths Group Ltd (ASX: WOW) CEO Brad Banducci, who has seemingly developed quite an interest in the fintech sector. This investment joins a stake in Tyro Payments Ltd (ASX: TYR) that Mr Banducci has delved into in recent years.
Limepay co-founder Dan Peters told The Australian that the ASX listing timing "would depend on market conditions and the overall progress in the company's hiring plans". Even so, he says "we are working towards" the goal of a 2021 IPO.
Since the ASX has seen a deluge of BNPL companies rise to the surface in recent years, it will be interesting to see if this appetite holds for yet another new player on the scene.
