- Openn plans to raise $9M through an IPO (initial public offering)
- The proptech platform allows multiple buyers to bid for a property
- The four year old company has seen $2B of property sell using the system
Perth-based prop tech company Openn Negotiation has lodged a prospectus with ASIC seeking to raise a maximum of $9 million via an initial public offering (IPO), listing on the ASX.
The company offers a proprietary cloud-based software platform to support real estate agents in selling residential property online through a transparent (open) negotiation process.
Last month, the company passed $2 billion in sales across their platform. In the most recent quarter, there were more than 15 bids per property, up from less than 7 a year ago.
Opening the negotiation
Launched in 2016/17, Openn allows real estate agents across Australia and New Zealand to facilitate transparent property transactions.
Buyers interested in a property can register and make bids in a live auction-like environment. Rather than the real estate agent running between various buyers with competing offers, the information is all transparent and visible on the platform.
The seller sits down with the real estate agent, watching the bidding action in real-time, much like an online auction.
All bids are visible, and anyone interested in a property can apply to be verified as a legitimate buyer through the platform.
Under the IPO, Openn will offer 45 million shares at an issue price of $0.20 cents per share to raise up to $9 million (before costs of the IPO). The offer is fully underwritten by the lead manager to the IPO, Euroz Hartleys, on a conditional basis.
The 45 million shares will represent around 23% of the company, post IPO, meaning the equivalent market capitalisation (post-money) would be in the order of $38 million.
Monies raised will be used to fund expansion in the Australia, New Zealand and US markets. The move into North America has long been an objective of the company.
The projected date for listing on the ASX is 9 June 2021.
Managing director and co-founder Peter Gibbons set up the company in 2017. Wayne Zekulich was recently appointed as non executive chairman. The board is rounded out by Darren Bromley (executive director and CFO), Duncan Anderson (executive director and CTO) and Danielle Lee (non-executive director).
