Prospa Soars Above IPO Price in ASX Debut

Prospa Soars Above IPO Price in ASX Debut

Prospa, the Australian small business lender, debuted at $4.50 on the ASX yesterday.

The share price was well above the $3.78 IPO price, and a victory for the SMB lender after its stalled IPO attempt last year.

A dispute with the Australian Securities and Investments Commission, or ASIC, delayed the IPO by 12 months.

Founded in 2012, Prospa has originated more than $1 billion in loans to Australian SMBs. Its current loan book totals more than $300 million, and it grew revenue more than 100% between 2016 and 2018 and projects 26% growth in 2019.

It also operates Prospa Pay, which allows businesses to buy now and pay over thirteen weeks, with no interest.

At a $720 million IPO market cap, Prospa joins Afterpay and Zip as Australian fintech success stories.

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Dominick DeJoy

Dominick DeJoy

Dominick DeJoy (@dominickdejoy) is the owner of Fintech Drift and a frequent contributor. With a history in finance and tech, he currently works at Preqin, previously was in commercial real estate investing, and was one of Bounce X’s (now Wunderkind’s) first employees.

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