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News & Analysis

Fintech Sezzle’s share price went beserk – so the ASX hit the pause button

- July 9, 2020 < 1 MIN READ
Photo: AdobeStock

 

Investor lust for ASX-listed fintechs continued today with US-based Sezzle (ASXSZL) skyrocketing more than 50% in Thursday morning trade before the ASX handed the stock a speeding ticket and placed it in a trading halt.

While easing during lunchtime trade, Sezzle shares were at one stage up 54% to peak at $7.50 having started the day at $5.06.

Reports are emerging that the company is looking to raise $80 million.

Like fellow ASX-listed buy now, pay later Afterpay,  Sezzle shares have been on a tear since hitting record lows in late March. In Sezzle’s case, they hit 35 cents before rising more than 1,000% before the financial year ended to just over $4.

But unlike Afterpay’s modest EBITDA prediction of $20-25 million for FY20, Sezzle is not yet in the black having posted an EBITDA of  -US$10.7 million in FY19.

One way Sezzle differentiates itself from other BNPLs is it’s a public benefit corporation (PBC) having announced its new status last month. PBC signifies that a company not only delivers shareholder profit but also creates a positive impact on the community at large.

Earlier this week, the company reported it had seen active users grow to 1.48 million users at June 30, up 28% between the March and June quarters.

Afterpay raised $800 million this week, and several other player in the sector are also on the hunt for cash.

Afterpay (ASX: APT) has another record day with its shares finishing up more than 11% to $73.54, just 2 days after the raise at $61.75 a share.

Co-founders Anthony Eisen and Nicholas Molnar both 2.05 million shares each – 10% of their stake – as part of the raise, meaning the two billionaires have missed out on adding another $24 million each to their wealth.