The crowdfunding sector gained its latest public company as CoAssets became listed on the National Stock Exchange of Australia (NSX) this week. Based in Singapore, CoAsstes operates a crowdfunding platform for real estate deals in Southeast Asia and Australia.
Going public at AUD 0.10 a share, CoAssets will be using the new funding from the IPO to expand into other marketplace sectors. According to the firm, the expansion plans will focus on P2P lending. The firm first entered P2P lending in June when SGD 200,000 in short-term loans was raised by Social Media Enterprise using the CoAssets platform.
For the overall marketplace lending and crowdfunding industry, following IPOs by Lending Club and OnDeck Capital at the end of 2014, the IPO market has been quiet despite rising valuations of venture backed deals. As such, the CoAssets IPO could be considered a proxy to discovering investor interest in smaller public deals.
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In regards to CoAssets, beyond raising capital, another benefit of going public is greater brand recognition of being a listed firm. In regards to this, CoAssets’ CEO Getty Goh remarked, “Being globally recognized, the NSX listing boosts our plans for internationalizing CoAssets.”
Goh added that despite being a Singapore-based company, they chose the list in Australia to gain more exposure in the market. He also explained, “While Singapore has a good start-up ecosystem, more support is needed for certain growth stage companies. With the limited market size here, not many venture capital (VC) funds are in the one to two million dollar funding space, in comparison, the Australian stock market and investors are more receptive of technology businesses.”