The Harmoney Corp Limited (ASX: HMY) share price had an underwhelming start to lift as a listed company.
On Thursday the online direct personal lender’s shares fell 1.5% to $3.45.
At one stage, the Harmoney share price was down as much as 10% to $3.15 before staging a recovery.
The Harmoney IPO.
Harmoney landed on the ASX boards yesterday after successfully completing its initial public offering (IPO) and raising $92.5 million at $3.50 per share.
According to an announcement, the company’s IPO was well supported by a range of institutional and retail investors across Australia and New Zealand, with applications exceeding its offer size.
From the raising, approximately $70 million (before costs) will be used to fund its growth as it accelerates originations in Australia and New Zealand. It will also be used to fund of loans by bank-funded warehouse facilities.
What is Harmoney?
Harmoney is one of the leading online direct personal lenders in the ANZ region.
Since originating its first loan in August 2014, the company has originated over NZ$1.8 billion in personal loans.
Between FY 2015 and FY 2020, it has grown its loan originations by an impressive compound annual growth rate of 86%.
It is serving thousands of customers across Australia and New Zealand with a total current loan book of approximately NZ$472 million.
Harmoney’s CEO and Managing Director, David Stevens, commented: “The evolving nature of the Australian and New Zealand personal finance market represents a highly attractive growth opportunity for Harmoney, with the Company’s strong historic record of loan originations, proprietary Stellare technology platform, major bank warehouse funding facilities and high customer satisfaction.”
“Today’s listing is a significant milestone for enabling the acceleration of growth across the Australian and New Zealand markets,” he added.
Trading update.
The lukewarm response to its listing yesterday might have come as a surprise to management considering its performance in the current financial year.
According to yesterday’s release, Harmoney has exceeded its origination, revenue, and cash net profit after tax prospectus forecasts for the four months to 31 October.
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