DomaCom moves into IPO mode
Property crowdfunding business, DomaCom, has announced it has formally moved to list on the Australian Securities Exchange (ASX), after the company successfully lodged its prospectus earlier in June, with an aim to raise $10 million with a minimum of $5 million from investors.
The applications to invest in the underwritten Initial Public Offering (IPO) for DomaCom opened today.
The injection of capital via an IPO was expected to enable the company to commence a property book-build and, subject to regulatory approvals, launch a seniors' equity release product and a fractionalised corporate bond product.
DomaCom's chief executive, Arthur Naoumidis, said he was confident that the $10 million target would be reached.
"We have created a lot of public interest around our fractional investment platform, especially our high-profile bid for the land component of the iconic Kidman Station, and we are confident this will translate into investor interest in DomaCom."
"Being an innovative platform, a world first, and operating in the intermediary market as we do, the capital raising will give DomaCom a strong financial base, putting to rest any concerns about our ability to manage a fund and deliver new products to the market," he said.
In March, the company secured a commitment of more than $70 million from more than 4,500 investors to purchase Australia's pastoral icon, the Kidman Station.
However the fund managers failed to address a huge retail appetite for investment in agricultural assets.
The company also informed that the bid for Kidman was still open and it continued the bookbuild to buy Kidman Station as well as another rural property in Queensland and New South Wales worth around $20 million.
In June, the company additionally introduced some changes to its platform to enable advisers to complete certain application forms online.
Shaw and Partners will be the sponsoring retail broker, while Pulse Markets will be the lead institutional broker for the IPO.
AUTHOR
Oksana Patron
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
