Social Trading Brokerage Ayondo Files for $100 million IPO on SGX

The firm reported a loss of $7 million in the first nine months of 2017.

One of the brokerages in the industry that is strongly committed to social trading, Ayondo, has announced that it is preparing to list its shares on the Singapore Stock Exchange. The Germany-based firm has submitted the paperwork for the process with trading expected to begin on the 26th of March. The announcement is a conclusion of the company’s listing effort that started in 2016.

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The company which has been strongly supported over the years by Singapore-based private equity investor Luminor Capital is seeking to raise $16 million. Ayondo’s shares will be offered for SGD $0.26 apiece.

After the IPO, the company’s market capitalization is expected to reach about $130.7 million. The total amount of company shares is at 80.77 million shares. The public offering is for 8.9 million with the remainder being for placement.

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About half of the proceeds of the sale will be committed to a loan repayment. Another $4 million will be committed to marketing, while $1.6 million will be spent on improving the company’s technology. Ayondo will use another $2 million as general working capital.

Commenting on the deal, the Chief Executive Officer of Ayondo, Robert Lempka, said: “Listing on a reputable platform like the Singapore Stock Exchange, even at this early stage as a company, is something we believe is the right thing to do.”

Revenues for 2017 Stood at $15.5m

The company reported a loss of $7 million in the first nine months of 2017. Last year the firm was in RTO (reverse takeover) talks with Singapore-listed Starland Holdings. The deal fell through with the valuation that was circulated at the time at around $120 million.

The company’s CEO pointed out that he expects the positive effects of the listing on the SGX to make the acquisition of new partners much easier. The growth strategy of the firm has been focused on the UK and Germany with Ayondo looking to Spain for a third large market to operate in.

The social trading broker was founded in 2008, at the height of the financial crisis. Revenues for the first nine months of last year totaled $15.5 million.

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