Australia's rent.com.au has listed on the Australian Securities Exchange (ASX) via a back door take over of former gold, copper and nickel explorer, Select Exploration. It will trade under the ASX code RNT.
As part of the back door listing, rent.com.au raised AUD 5m at a share price of 20c per share.
Founded in 2007, rent.com.au is a property portal targeting the rentals segment and displays 80 per cent of national real estate agent rental listings. CEO Mark Woschnak said ""we want to become the home for the rental process in Australia, not for sales and the big opportunity was the non-agent market, which he said represented 46 per cent of all rentals."
Following the issue of new shares, there will be 88 million shares on issue, making the listing market cap just under AUD 18. The existing Select Exploration shareholders will hold 11.4 per cent, while rent.com.au vendors will have 60.2 per cent.
The new capital raised would be used to hire new staff, as well as to boost sales and marketing, with the aim of moving into profit in the medium term. Mr Woschnak said "we've geared this business to now get ready to employ another 30-odd staff over the next six to 12 months. That's a significant increase of the levels of six staff that we've got.
"This business has spent seven years building the back end of content, products, IT, mobile, alliances and such. We are now shifting our focus towards creating the consumer brand of Rent, so it becomes a recognised household brand."
Shares traded between a high of 24c and a low of 19.5c on day 1.