The Sezzle Inc (ASX: SZL) share price is bouncing off year-to-date lows on Monday. This is after news the company has filed a confidential registration for a proposed initial public offering (IPO) in the United States.
At the time of writing, shares in the US-based buy now, pay later are up 0.76% to $6.64. That's after an intra-day high of $6.77 which it reached mid-morning.
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Sezzle eyes US listing
Sezzle announced this morning that it has confidentially submitted a draft Registration Statement for a proposed IPO. The registration is lodged with the US Securities and Exchange Commission (SEC).
The company advised that the number of shares to be offered has not yet been determined. Nor have they determined the price range for the IPO.
Sezzle aims for the IPO to take place after the SEC completes its review process. Timing will also depend on market and other conditions.
According to the Australian Financial Review, Sezzle shares might list on the US market before the end of the year.
Why seek a dual listing?
Sezzle is still a loss-making company. February full-year results cite a net loss of US$31.89 million with US$89 million in cash and cash equivalents.
The loss-making nature of the business continued into its latest second-quarter update in addition to US$60.95 million in cash and cash equivalents.
Looking ahead, Sezzle is targeting a number of existing and new international growth opportunities, including Canada, Brazil, Europe and India.
A dual listing could improve the company's liquidity position and enable it to diversify its capital raising activities.
In addition, Sezzle is a US-based business compared to most ASX-listed BNPL companies with headquarters in Australia.
Sezzle share price snapshot
2021 has been a dull year for the Sezzle share price, up 7.02% year to date.
Recent quarterly results pulled down the company's share price performance, which witnessed a 14.86% tumble to $7 on Tuesday 17 August.
