Australian rental property website Rent.com.au will offer up to 36,376,607 shares at an issue price of $0.15 each after announcing one of its strongest months on record.
Fully underwitten by lead manager Jett Capital Advisors, the non‐renounceable issue is expected to raise $5.45 million before costs, which the company says will be utilised to commence the offline phase of its national branding campaign.
Rent.com.au Founder and Managing Director Mark Woschnak says demand for sub‐underwriting the allocation was heavily oversubscribed and that he expects the company to have a total of $8.5 million cash following completion of the issue.
Woschnak says he is pleased with the strong demand from institutional and sophisticated investors which reflected the company’s continued strong progress against its core objectives.
“We recently announced that March 2016 was one of our strongest months on record, with the strongest new agent registrations since listing and all‐time highs in the number of unique visitors and also non‐agent listings on the site,” Woschnak says.
In March 2016, Rent.com.au achieved more than 640,000 unique visitors to the website while also continuing to increase agent registrations and landlord listings in line with its content targets including three consecutive months of over 500,000 unique visitors per month.
Woschnak says the month saw Rent.com.au's strongest growth to date in real estate agent registrations, which now number more than 7,300 agents registered plus an all time high in the number of non‐agent listings.
"We also achieved a new record of active landlord listings and continued strong user engagement metrics," he says.
The good results prompted an upgrade to number 5 on Techboard’s latest startup ranking,
Woschnak adds Rent.com.au has a strong board and executive team, robust and scalable technology and is now well capitalised.
"We are in a position to further accelerate our commercialisation objectives by commencing offline marketing activities to support our recently deployed national sales team.”
As of 13 April 2016, shareholders will be eligible to acquire 1 additional share for every 3 shares they hold at the Record Date, with acceptance forms to be returned by the closing Date of 28 April 2016.
The issue price of $0.15 per share represents an 18 per cent discount to the 10 day Volume Weighted Average Price. GMP Securities will act as brokers for the offer.