The Butn Limited (ASX: BTN) share price has had a reasonably subdued start to life as a listed company.
The business-to-business transactional funder's shares landed on the ASX boards on Tuesday at an offer price of 50 cents per new share.
This morning the Butn share price is trading at 50.5 cents, up a modest 1% from its offer price.
The Butn IPO
Butn's IPO raised $20 million at 50 cents per share. Management notes that the IPO was oversubscribed and received strong support from institutions, high net worth individuals, and retail investors. It also was supported by accounting platform provider MYOB Australia, which has increased its strategic investment in Butn to 19.9%.
Based on the current Butn share price, this gives the company a market capitalisation of ~$81 million.
According to the release, the IPO funds will be used to invest in Butn's core business model, including receivables book growth, accessing new markets, and expanding its Platform Partnerships
What is Butn?
Butn was founded by joint CEOs and Executive Directors Rael Ross and Walter Rapoport. It helps small and medium enterprises (SMEs) through their working capital constraints, providing them with business transactional funding. To date, Butn has financed more than $500 million of business transactions since 2015.
In 2020, the company launched its fintech solution which digitises and automates the process. This includes customer on-boarding, credit and risk assessment, funding and collections, providing business funding at the click of a button.
The company highlights that the Butn fintech solution is built to integrate with strategic Platform Partners, such as MYOB Australia, allowing for rapid scalable distribution of its funding products.
Joint CEO Rael Ross said: "Australian SME funding is a $300 billion market opportunity which is under- serviced by traditional financiers. Our proprietary Butn fintech solution, our proven track record and the successful IPO all position us strongly for future growth alongside our Platform Partners and shareholders."
Butn share price performance
While today has been subdued, day one was a little more eventful for the Butn share price.
It was up as much as 10% yesterday before fading back down to its offer price. Shareholders will be hoping the early gain on Tuesday is a sign of things to come.
