Laybuy share price soars 47% above IPO on first day of ASX trading

The Laybuy Group Holdings Limited (ASX: LBY) share price has stormed higher on its first day of trading on the ASX.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Laybuy Group Holdings Limited (ASX: LBY) share price has stormed higher on its first day of trading on the ASX.

The Laybuy share price finished the day on $2.08, 47% above the IPO listing price of $1.41

The buy now, pay later (BNPL) company went as high as $2.30 in early morning trade, before settling back.

What does Laybuy do?

Launched in 2017, Laybuy has been growing rapidly in Australia, New Zealand and the UK. The fintech company has partnered with over 6,000 retail merchants to offer consumers a BNPL service. The integrated payment platform allows customers to make a purchase and pay it off over 6 weekly instalments without incurring interest.

What did management say?

Co-founder and managing director Gary Rohloff was upbeat about the company's achievements.

He commented:

Laybuy was established to help consumers avoid the trap of high interest credit cards and to help families better manage their budgets by allowing them to stagger their purchase payments. We are all very proud of what we have achieved to date.

With this support from our new shareholders, the board, management and the entire Laybuy team are committed to growing the value of Laybuy as we continue to focus on achieving our goal of creating a ubiquitous global brand.

Financial snapshot

For the full-year ending on 30 June, Laybuy had 5,672 active merchants and 473,000 customers. The company processed over NZ$116 million gross merchandise value (GMV) of sales for the June quarter. Laybuy anticipates around NZ$460 million for the full-year.

The company has secured a NZ$20 million debt facility to fund its New Zealand and Australian operations and a £80 million debt facility to fund growth in the UK.

Outlook

Since the start of FY21, Laybuy has recorded NZ$86.7 million GMV of sales across July and August. This represents a growth of 161% compared to the prior corresponding period. Active merchants at the end of August totalled 6,180 and active customers totalled 542,000.

The company has continued to develop its pipeline, bringing more retailers onboard, and aims to continue capturing highly recognised retail brands and small-to-medium enterprise merchants.

The fintech is hoping to achieve a growth GMV of NZ$4 billion (more than 8 times the annualised GMV for Laybuy) in the future.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Happy woman working on a laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a pleasant end to the trading week for investors this Friday.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why Chrysos, GQG Partners, Macquarie, and Webjet shares are storming higher today

These shares are ending the week on a positive note. But why?

Read more »

A young man sits at his desk working on his laptop with a big smile on his face.
Share Gainers

The top 3 ASX 200 trades since the Liberation Day dip

These companies are up at least 35% in just over a month.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Share Gainers

Boss Energy shares have rocketed 90% in a month. Here's why

The massive rally in Boss Energy shares will be painful to the host of short sellers betting against the uranium…

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors sent the market higher once again today.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

3 reasons to buy this surging ASX All Ords gold stock today

The ASX All Ords gold stock has doubled investors’ money in 12 months, and this leading expert forecasts more outperformance…

Read more »

Two colleagues at work looking at a tablet and smiling at a rising share price.
Share Gainers

Why Generation Development, Orica, Pro Medicus, and Zip shares are storming higher today

These shares are having a strong session on Thursday. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Up 114% in a year, why is the Pro Medicus share price leaping higher again on Thursday?

Pro Medicus shares are back in form today and leaping ahead. Here’s why.

Read more »