As the market gears up to see Afterpay Ltd (ASX: APT) shares pulled from the ASX, Beforepay is getting ready to take its place. Or, at least, its name may help remind ASX investors of their former market darling.
Beforepay doesn't work in the same field as Afterpay. It's not a buy now, pay later (BNPL) provider.
Instead, it provides 'Pay on Demand', giving users access to their salaries ahead of their payday. It charges a flat 5% transaction fee and gives users the choice between repaying their loan on their next payday or over 4 weeks.
And now, Beforepay is gearing up to float on the Australian exchange. Let's take a look at what the new year could bring to the ASX.
After Afterpay, comes Beforepay's IPO
Beforepay is readying itself to raise $35 million through its Initial Public Offering (IPO), offering shares for $3.41 apiece.
Beforepay's joint lead manager, Shaw and Partners has announced the company is planning to list under the ticker, ASX:B4P.
The company started operations in August 2020. It has since advanced $170 million of its customers' pay-packets.
It is experiencing a 30% compound monthly growth rate, excluding COVID-19 lockdowns.
Finally, Beforepay's annualised revenue run rate in October was $14 million.
However, the company hasn't yet turned a profit. Over financial year 2021, Beforepay brought in approximately $4.5 million and reported a loss after tax of approximately $18.7 million.
At this point in time, Beforepay's IPO is only open to Australian sophisticated and institutional investors.
However, according to reporting by The Australian, the general market might be able to get their hands on a piece of Beforepay in a matter of months. The publication claims Beforepay is targeting a list date of 17 January.
The publication also claims Beforepay is hoping to float with a market capitalisation of $158 million.
Additionally, those who will miss trading Afterpay shares on the ASX might find Beforepay more appealing for another reason.
Beforepay is reportedly signing on the BNPL giant's former chief financial officer, Luke Bortoli as a director.
The company is also chaired by former Westpac Banking Corp (ASX: WBC) CEO, Brian Hartzer, while former Westpac chief strategy officer and chief data officer James Twiss is its CEO.
