Crowdfunding for IPOs.

Overview

SelfWealth Limited (ASX: SWF), established in 2012, is a potentially disruptive brokerage service with Peer to Peer (P2P) portfolio construction functionality for Australian investors.  Their online network provides clients with low transaction costs and substantial data / software tools to assist clients in making their own investment decisions.

SelfWealth contains two products/services. SelfWealth TRADING is a flat fee Trading solution. Currently the flat rate is $9.50 per trade, irrespective of the size of the trade. SelfWealth is able to offer this flat fee solution for several reasons, most notably by virtue of its operations being cloud based reducing human resource requirements in a scalable online environment.

The SelfWealth PREMIUM feature, is a powerful benchmarking tool enabling self-directed clients to benchmark their portfolio construction and performance against the portfolios of other SelfWealth PREMIUM clients.   This PREMIUM feature has two key tailored software tools designed with the objective to provide clients with specific historical data to assist them to make more informed portfolio / trading decisions. The SafetyRating is a measure of a portfolio’s diversification and the WealthCheck Score indicates the performance of a portfolio relative to the SelfWealth PREMIUM investing group as a whole.

Post the launch of SelfWealth TRADING in September 2016, and SelfWealth PREMIUM in early 2017, the company has enjoyed strong growth in both “Monthly Trade Volumes” and “Fund Under Analysis”.

Monthly Trade Volumes since September 2016

Monthly ‘Funds Under Analysis’ ($m) since September 2016

Offer Overview

SelfWealth Limited is looking to raise between $5.0 and $7.5 million via its IPO, resulting in an expected market capitalisation of approximately $26 million at a maximum subscription.  The purpose of the offer includes additional marketing and advertising, technology development, costs associated with the offer and to provide working capital.

SelfWealth has raised $12.3 million in paid up capital since 2012 through several financing rounds, with large institutional investor Washington H Soul Pattinson introduced to the share register in 2015. All Shares issued have been the same class of share, namely fully paid ordinary shares.

Size of the Market

Superannuation assets totalled $2.3 trillion at the end of the March 2017 quarter and experienced an 11.2% increase in total superannuation assets from the previous year. ASFA has estimated Australians will hold approximately $3.5 trillion in super by 2025 with a key driver to this predicted growth being an increase in the mandatory contribution rate from 9.5% to 12% by 2025.

The number of SMSFs in Australia is growing rapidly, and is set to continue to do so in the future. In December 2012, there were around 491,000 SMSFs in Australia compared to over 585,000 today. The SMSF sector is expected to continue to expand significantly in terms of total funds. Deloitte estimates the SMSF sector will exceed $2.5 trillion in assets by 2035 out of a total superannuation pool of $9.5 trillion.

Growth and Revenue Strategy

SelfWealth has a number of contractual and non-contractual relationships including a 7 year distribution agreement with BGL Corporate Solutions Pty Ltd. BGL is a leading Australian SMSF software provider to over 2,900 SMSF accountants and administrators representing over 160,000 SMSFs. The BGL Distribution Agreement enables BGL’s SMSF clients to gain access to SelfWealth PREMIUM through this SMSF Accountants and Administrators distribution channel. 

SelfWealth aims to grow its market share and revenue by:

• Accelerating marketing activities to target potential new clients from those Australians intent on conducting independent trading in the next 2 years or who are keen to start investing, but who aren’t currently trading.
• Targeting intermediaries such as Independent Financial Advisers (IFAs) and AFSL holders through promotion, sponsorship and product development, who are keen to gain a competitive advantage by partnering with SelfWealth.  
• Continuing to develop business enhancements, new products and services not currently available for SelfWealth online clients including margin lending and exchange traded products.

Management and Board

The Company has an experienced Management team and Board which includes:

• Andrew Ward - Managing Director – 25 years’ experience in financial services, including Executive Manager for Commonwealth Private
• Tony Lally – Non-Executive Chairman – former Chair of Association of Superannuation Funds of Australia and former CEO of Sunsuper
• John Gaffney – Non-Executive Director – Director of Paradigm Biopharmaceuticals Limited and former legal counsel for the Australian Financial Ombudsman Service
• John O’Shaughnessy – Non-Executive Director – currently a director of the Centrepoint Alliance, Alpha Vista Financial Services and Chairman of Adelaide’s International Centre for Financial Services Advisory Board

 

As set out in Section 9 of the Prospectus, SelfWealth Limited is subject to a range of risks, including but not limited to regulatory risk, technology and software issues, loss and theft of data, disruption of business operations and conducting business in a competitive market.

 

^{Section 734(6) disclosure: The issuer of the securities is SelfWealth Limited ACN 154 324 428. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​}

Overview

Appetise is a UK-based online and mobile takeaway food marketplace with ~90,000 registered customers and 400 restaurant partners on its platform. The business has a national footprint, is scalable with low capex, and derives its revenue from commissions charged to restaurants. Appetise is a pure play marketplace between consumers and restaurants. The company does not handle delivery or logistics or manage a fleet of delivery drivers, and has an operating model is similar to that of MenuLog in Australia.

The UK market for takeaway exceeds $10 billion annually, with Just Eat dominating market share. JustEat has taken advantage of low competition and offers a higher cost proposition for restaurants and customers as compared to Appetise, which has created an opportunity for a nimble competitor.

Appetise plans to win market share from the accelerating migration of telephone ordering to online, and aims to grow market share via:

• Eliminating restaurant joining fee of up to £699 charged by the competition
• Charging restaurants up to a 10% commission on orders (compared to up to 14% charged by the competition)
• Providing consumers with a loyalty scheme
• Not charging 50 pence card fee charged to consumers by competition
• Being the only platform to provide restaurant hygiene ratings on its platform

The company had a gross order volume of ~$500,000 and net revenue of ~$50,000 in in the year to 31 March 2017.

Offer Overview

Appetise (Holdings) Limited is seeking to raise between $4.8 million and $6.8 million via its IPO, with a $9 million pre-money market cap, resulting in an expected capitalisation of $15.8 million at the maximum subscription.  The purpose of the offer is to expand the sales team, undertake marketing campaigns and invest in further development of platform and systems, as well as fund the overhead and the working capital.

Further, the Company intends that all Shareholders of the Company registered on a record date falling approximately 3 months after the date Appetise is admitted to the Official List should receive 1 loyalty Option for every 2 Shares. The Options will be quoted on ASX and have an exercise price of $0.22 each and an expiry date two years after issue.  

The Company has secured institutional cornerstone investor support for the IPO.

All of the shares other than the shares issued in the IPO will be escrowed for 24 months.

The Market

The global food delivery market was estimated to be $124 billion in November 2016 with the UK takeaway market being a significant proportion of that, and the largest in Europe, at $10.7 billion and expected to grow to $12.8 billion by 2020.  Britons spend more on takeaway food than anyone else in Europe with the average spend being $233 per person per year.  

Further, currently over 50% of all orders from takeaway and delivery restaurants in the UK are still placed by telephone. The rise of digital technology is reshaping the market as consumers, accustomed to shopping online for a wide range of goods and services, expect the same convenience when it comes to ordering dinner.   

Globally, the sector is undergoing aggressive consolidation via M&A at substantial valuations (15+ transactions over the past two years), eg:

• Just Eat’s proposed acquisition of Hungry House in the UK (subject to regulatory approval)
• Grubhub acquired Eat24 in August 2017
• Just Eat acquired Menulog in Australia in May 2015
• In an adjacent vertical of delivery logistics software, GetSwift (ASX:GSW) IPOed in December 2016

Revenue Model and Growth Strategy

Takeaway and delivery restaurants contract with Appetise to join its platform and have their menus made accessible to consumers. Consumers access Appetise's website and apps, which allow them to view takeaway and delivery restaurants servicing their area and offering a range of cuisines. The company derives its revenue from commissions charged to restaurants on the value of orders placed through Appetise’s platform, which are currently typically set at 10% of the value of the order. The restaurants take responsibility for preparing and delivering the food. Appetise has no involvement, and does not incur costs, in the logistics of food preparation or delivery.  

Appetise believes that its asset-light model affords it the potential for scalability.  

Growth in the number of restaurants on the platform is a key factor in the company's strategy. Appetise intends to use the proceeds of the IPO to grow its sales team so as to increase the number of restaurants available on its platform in clusters, city by city throughout the UK. The Company believes that the fact that it does not charge restaurants fees to enrol in the platform, and the fact that its  commission rates are lower than the key competitor’s are key to Appetise’s ability to sign up additional restaurant partners.

Appetise intends to grow its consumer base by conducting aggressive marketing and public relations campaigns educating the consumer about the options available to it, and the benefits of using the platform (including there being no fee, the loyalty scheme, and being able to make an informed choice through being able to see restaurants hygiene ratings)

Management

The Company has experienced, proven and driven Board and management, which include Keith Edelman, a former CEO of soccer club Arsenal Holdings, Simon Smith, a former CEO of eBay Australia, and Konstantine Karampatsos, formerly Commercial Director of TheFoodMarket.com, Head of e-commerce at Play.com (acquired by Rakuten, one of the world’s largest retailers and e-tailers), and Amazon marketplace specialist.

Important Information

As set out in Section 8 of the Replacement Prospectus, Appetise (Holdings) Limited is subject to a range of risks, including but not limited to technology, conducting business in a competitive market, consumer and restaurant acceptance and reputation.

 

^{Section 734(6) disclosure: The issuer of the securities is Appetise (Holdings) Limited ACN 619 564 699. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​}

 

Overview

HyGieaCare, Inc. (ASX: HGC) is a US-based healthcare services provider that specialises in providing colon cleansing procedures to patients via the FDA-cleared medical device known as the HyGieaCare Prep System.  HyGieaCare operates by establishing and operating medical centres which provide colon cleansing procedures to patients.  The Company commenced operations in January 2015 and has, to date, established five medical centres across the US, with two additional centres currently under development. 

The HyGieaCare Prep System has performed over 4,450 procedures on patients to 30 June 2017 with zero unexpected or severe adverse events, a 97% adequate preparation rate and excellent patient satisfaction, with 95% of patients surveyed stating a willingness to repeat the procedure. These quality metrics are superior to those experienced by patients using the traditional split-dose Oral Prep for colonoscopy.

The Founder, Gavriel Meron of HyGieaCare Inc., has over 20 years of experience in the gastroenterology market. Gavriel led the development and commercialisation of the PillCam®, a small, disposable capsule used to monitor and diagnose disorders of the gastrointestinal tract without sedation or invasive endoscopic procedures. The PillCam® is sold into gastrointestinal markets around the world.

The Company has an exclusive manufacturing and supply agreement for the HyGieaCare Prep System with Lifestream Purifications Systems (LPS), LLC which manufactures the devices.  LPS is a founding shareholder of the Company.

Offer Overview

HyGieaCare, Inc. is looking to raise $10 million with the right to accept another $5 million in oversubscriptions via its IPO, resulting in an expected market capitalisation of $40 million at a maximum subscription.  The company is offering CHESS Depositary Interests (CDIs) over ordinary shares. CDIs represent the beneficial interest in the underlying shares in a foreign company and are traded in a manner similar to shares of Australian companies listed on the ASX. Each CDI is equivalent to 1 share.

Target Market

There are approximately 15 million colonoscopies performed annually in the United States, primarily to screen for colorectal cancer (CRC).  Despite the prevalence of CRC it is one of the most preventable forms of cancer with routine screening and early diagnosis.  HyGieaCare’s key target market is the US market of bowel preparation for lower endoscopy procedures, and in particular colonoscopy.  HyGieaCare is also targeting the US market for treatment of chronic constipation. The Company estimates that there are currently roughly 45 million chronically constipated patients in the United States, being approximately 14% of the population.  Despite the size of the market, there is a lack of effective, desirable treatment options available, with many patients dissatisfied with currently available over-the-counter and prescription stool softeners and laxatives.

Total HyGieaCare Prep procedures performed by half years

Revenue Generation

HyGieaCare operates by establishing and operating medical centres which provide colon cleansing procedures to patients.  A HyGieaCare Centre can be set up as a joint venture with GI physician groups, a wholly owned entity or under a license agreement with a hospital/medical centre.  In the case of joint venture and wholly owned centres, the Company earns revenue by charging patients per procedure, being either a bowel preparation for colonoscopy or providing relief of chronic constipation.  In the case of license agreements, which the Company is actively pursuing with hospitals, HyGieaCare intends to charge the hospital:

• an annual license fee;
• a monthly leasing fee for each HyGieaCare Prep System leased by the Company to the hospital; and
• a fee for each patient procedure performed.

Use of Funds

The proceeds of the offer will be used to:

• fund the establishment of new HyGieaCare centres in the US;
• conduct targeted patient marketing campaigns to raise awareness;
• conduct further clinical data studies;
• provide working capital; and
• pay the costs associated with the Offer.

 

As set out in Section 5, HyGieaCare is subject to a range of risks including, but not limited to, slow professional acceptance of HyGieaCare Prep by GI physicians, loss of key personnel, reputational damage due to a failure in procedure performance, restrictions on physician referrals, reliance on a key supplier, low barriers to entry, competition, limited sales and marketing resources, and changes to the regulatory framework.

 

^{Section 734(6) disclosure: The issuer of the securities is HyGieaCare, Inc. ARBN 619 947 983. The securities to be issued are CHESS Depository Receipts (CDIs) over ordinary shares in the capital of HyGieaCare, Inc., to be quoted on ASX. The disclosure document for the offer can be obtained via the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​​}