- Buy now, pay later company Sezzle has gained over 80 per cent after a $43.6 million Initial Public Offering (IPO) and is now listed on the ASX
- Sezzle raised $43.7 million at $1.22 per share
- When the IPO is completed, the company will raise $217 million
- Sezzle users have six weeks to repay the cost in four instalments
Buy now, pay later company Sezzle has gained over 80 per cent after a $43.6 million Initial Public Offering (IPO) and is now listed on the ASX.
Sezzle issued 35.7 million chess depositary instruments (CDI) in the company (equivalent to shares) priced at $1.22 each to raise $43.7 million.
Once the IPO is complete there will be a total of 193.2 million CDIs, giving the company a market value of $217 million.
Sezzle is a technology driven, payments operation company that launched in 2017 and is based in the United States. It is currently operating in 12 countries.
How will it work?
Merchants will pay a fee on each transaction and the buyer will repay the amount in four instalments which are interest free.
The buyer has six weeks to repay but the first payment is due at the time of the purchase.
The company will use the funding to focus on its North American market where it will go head to head with market leader Afterpay.
CEO Charlie Youakim is pleased that Sezzle is on the ASX.
“We are extremely proud to have attracted the support of our IPO investors, including many institutional investors who possess an extremely detailed understanding of the ‘buy now, pay later’ sector and the immense opportunity ahead for Sezzle,” he said.
This quarter Sezzle has had 5048 active merchants using the platform, which is 1727 more merchants than last quarter.
The Afterpay competitors reported 429,898 customers at the end of June which is a 403,174 increase than June 2018.
Sizzle shares are currently selling at $2.21 a piece.