It’s been just six weeks since payday lender Beforepay launched on the ASX, to a sickening roar.
Shares in the Brian Hartzer-the chaired fintech plunged 42% in its early days and has been falling ever since. Float investors can currently unload them for just a third of what they paid a month and a half ago.
These payments would have been made to the company via Shaw & Partners, whose co-management of the subscribed offer (with Evans & Partners) earned him $875,000 (or 2.5% of the revenue). But now, and just 31 trading days after the closing of said offer, Shaw & Partners has significantly lowered its expectations for the company’s value, citing the revaluation of the entire tech sector as a problem.
In a note to clients, Senior Analyst Danny Younis noted “continued fintech momentum across all key metrics” in its first-half results. Apart, alas, from the only one that counts. Younis kept Beforepay as a “buy,” but lowered its 12-month price target from a near-float price of $3.50 to just $2. Which, if reached, would still offer a 60% upside on Tuesday’s price.
Whether investors are still willing to take Shaw’s advice on this is another matter.