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Halo Technologies (ASX:HAL) shares drop on ASX debut

The Market Online Deal Room
ASX:HAL      MCAP $6.431M
27 April 2022 14:23 (AEDT)

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Halo Technologies (HAL) shares have traded down from an IPO issue price of $1.20 each after debuting on the ASX yesterday.

The Australian business offers global share trading research and services to investors – the bulk of them aged over 50 and with portfolios of $500,000 or more.

Halo plans to extend its services internationally and partner with other trading platforms, using the $36.1 million raised through the IPO process.

The company earns its revenue from subscription sales, brokerage fees, foreign exchange conversion fees, and management fees from its B2B and B2C client base.

Co-founder and CEO George Paxton said he was not concerned about day-to-day share price fluctuations.

He said the business was already profitable and had delivered a compound annual growth rate of 173 per cent in pro forma revenue from FY2019 to FY2021.

Mr Paxton said there were more than 3,800 subscribers to the research platform and another 3,800 trading-only members.

“It’s the end of a journey we’ve been through – growing the business since inception, having those user numbers, we acquired a business called Macrovue from AMP in 2019, and so, we’ve been through a load of selling and tech development,” he said.

“The IPO sort of feels like the end of something, but also the beginning of something – a much more exciting chapter in the company’s history.

“HALO Trading has grown revenues from $211,000 in FY2019 to $5.8 million in FY2022.

“HALO Global provides an array of tools for investors seeking to discover and research global investment ideas, manage their portfolios, access market analysis and offers in-built trade execution capability.

“We believe it’s an essential tool for the self-directed investor and a must have for financial advisors in Australia and overseas.”

HAL shares were trading 16.8 per cent lower at 91.5 cents at 2:18 pm AEST.

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