SINGAPORE: European financial technology company Ayondo is set to get listed on the Singapore Exchange's (SGX) Catalist board - the bourse operator's secondary board - on Mar 26.
It will be the first fintech firm to list on the SGX.
The company is trying to transform the brokering industry by providing a social trading platform, where users can copy the trading strategies of top traders who are trading on the Ayondo platform.
The Germany-based start-up will issue more than 80 million shares, with 8.9 million as offer shares and 71.8 million as placement shares.
The shares will be issued at S$0.26 and the total number of shares post-Initial Public Offering (IPO) will be at 502.7 million shares, valuing the fintech company at S$130.7 million.
Its IPO is expected to generate gross proceeds of about S$21 million, about 40 per cent of which will be used for loan repayment and 35 per cent for business expansion.
Ayondo's CEO Robert Lempka told reporters at a media conference Friday (Mar 16) that the company decided to go public because it will add credibility to the company, which is a challenge that fintech companies generally face.
In addition to the vibrant fintech scene in Singapore, Mr Lempka said that he chose to list in the city-state because Ayondo is looking to expand its operations in Asia.
“Going forward strategically, (Asia) is the most important region because of wealth generation, and in general, the willingness of people to use technology is very high in this region,” he said.
The company will be looking to grow its business in Asia by partnering with other financial services in Asia that are regulated and have an existing pool of customers.
Being the first fintech company to list in Singapore, Mr Lempka also noted that this could be both an advantage and disadvantage as Singaporean investors might not be familiar with Ayondo.
“So this is a challenge. But we believe in the medium and longer-term we will benefit because the SGX is looking to develop that sector," he said.
When asked whether investors in the country who are generally more conservative will warm up to a fintech listing, Mr Lempka said that education was key.
“Singapore, actually, is a very trading-savvy country, among the highest in the world. There is a high percentage of people here who understand how trading, how active investment works. That's where we are active,” he said.
“We believe that with a certain amount of education, which we have done and which we will continue to do, that behaviour will change.”
For the first nine months of 2017, Ayondo incurred a net loss of 6.6 million Swiss francs (S$9.1 million).
Mr Lempka was unable to estimate when the company might turn a profit, but added that revenue was growing more than costs and that “those lines will cross at some point”.
UOB Kay Hian is the sponsor, issue manager, underwriter and placement agent for the listing.