The endorsement of tech billionaire Bevan Slattery’s name on a share register has worked its magic with investors once again, with ASX-listed rent.com.au seeing its shares up more than 200% after he took a strategic investment at $0.05 cents a share in the company’s raise of $2.75 million.
In lunchtime trade on Tuesday Rent (ASX:RNT) shares hit $0.13 cents. Slattery backed the raise to the tune of $2 million through Capital Trust, his family’s early stage investment vehicle.
In July last year, Slattery took a $2.5 million stake in cloud-based 3D geospatial image venture Pointerra and its share price doubled in response.
In a company statement to the ASX today about his latest investment, Slattery said: “I love disruptive platforms that have the ability to scale and Rent.com.au has great potential to achieve that goal. I look forward to supporting the Board and management team and am excited to be backing another innovative Australian technology platform.”
The investment comes as the venture begins to launch RentPay, with which it aims to give renters more control and flexibility over their payments and managing their housing expenses. The business has just second successive positive EBITDA quarter from its initial venture, the Rent.com.au portal.
Rent.com.au CEO Greg Bader said having Slattery on the books as a major shareholder was “fantastic”.
“Bevan has a well-earned reputation for innovation and disruption across the technology sector,” he said.
“I am excited that Bevan shares our vision for the platform and this additional investment will allow us to maximise the potential of our upcoming RentPay launch and provide additional working capital for marketing and product development.”
The Placement issue price of $0.05 per share was a premium of 16% to the last price at which the company’s shares traded prior to its announcement, which is expected to be allotted on Tuesday, February 9.
Bevan Slattery is the founder of Megaport, NextDC and Superloop.
* Editor’s note: The shares ended Tuesday up 202%. On Wednesday, Rent.com.au shares rose another 42% – 5.5 cents – to $0.185.
Daily startup news and insights, delivered to your inbox.