Consumer credit firm Harmoney had a lackluster start on the Australian and New Zealand stock exchanges.
The company’s shares were trading at AU $ 3.26, 7% below the issue price of AU $ 3.50 in Australia, and NZ $ 3.70 in New Zealand, about 1% lower. .
The New Zealand-based personal loan company has made the Australian stock exchange its main trading house with the NZX as a secondary market.
This is the second new listing for the NZX this year and comes after the company raised A $ 92.5 million (NZ $ 99 million) a few weeks ago.
Harmoney chief executive David Stevens said the money would allow him to compete against similarly styled companies that had recently listed on ASX.
“It is … for us to be able to accelerate our marketing, which has a very strong correlation with the growth in our volumes.
“After doing our Series C capital raise last year in Australia, we put a lot of money into our marketing there and were able to get almost 10,000 accounts per month.”
Stevens said he chose ASX as his trading house because Australia’s consumer loan market is 10 times bigger than New Zealand’s.
“Although there are more competitors, there are more opportunities.”
In an operational update, the company said it had improved the earnings forecast in its prospectus for the four months ended in October.
Its net profit for the period was NZ $ 1.6 million, beating its forecast by NZ $ 500,000.
Meanwhile, NZX chief Mark Peterson said a second local stock exchange listing this year was welcome, and he wasn’t upset that Harmoney had made New Zealand his secondary market, saying it was important for local investors to be able to negotiate. the stock in the local market.
He was optimistic that there would be more registrations before the end of the year, as companies had a high demand for capital.
“We really hope that will happen and we are also quite optimistic for next year.”