- Business-to-business transactional company Butn (BTN) debuts on the ASX, trading under the ticker code ‘BTN’
- Butn offers advances on payments for small businesses, including on commissions and invoice payments, through a digitised platform
- The finance stock raised $20 million through its initial public offering (IPO) at an offer price of 50 cents per share
- Butn will use the money to invest in book growth, access new markets and expand its platform partnerships
- In its first day of trade, Butn’s shares are trading steady at 50 cents
Butn (BTN) has officially commenced trading on the Australian Securities Exchange (ASX) under the ticker code ‘BTN’.
The finance stock debuted on the ASX on Tuesday, July 6, at 10:30 am AEST after successfully closing its initial public offering (IPO).
Butn raised $20 million through the IPO at an offer price of 50 cents per share which gives it a market capitalisation of about $80 million.
The IPO was oversubscribed and received strong support from institutions, retail investors and high-net-worth individuals. Business software company and one of Butn’s platform partners, MYOB Australia, also extended its support and increased its investment in Butn to 19.9 per cent.
The business-to-business (B2B) transactional funding company was founded by joint CEOs and executive directors, Rael Ross and Walter Rapoport.
Butn claims it has financed more than $500 million in business transactions since 2015. Last year, it launched its fintech solution which digitises and automates the process including customer onboarding, credit and risk assessment, and funding and collections. Essentially, this allows for a rapid distribution of its funding products.
Mr Ross said the Australian small-and-medium enterprise sector is underserviced which offers Butn a market opportunity.
“Australian SME funding is a $300 billion market opportunity which is under- serviced by traditional financiers. Our proprietary Butn fintech solution, our proven track record and the successful IPO all position us strongly for future growth alongside our platform partners and shareholders.”
The company will use the money raised in the IPO to invest in its business model, including book growth, accessing new markets and expanding its platform partnerships.
In its first day of trade, Butn’s shares were up a slight 2 per cent in early afternoon but has since gone into the grey to trade at 50 cents at 1:19 pm AEST.