It hasn't been a very positive first day of trade on the Australian share market for the Plenti Group Limited (ASX: PLT) share price.
Earlier today the technology-led consumer lending and investment company's shares were trading 25% lower than their initial public offering (IPO) price at $1.25.
At the time of writing the Plenti share price has recovered slightly and is up to $1.34.
What is Plenti?
Plenti is a growing technology-led consumer lending and investment business which provides borrowers with efficient, simple, and competitive loans. These are delivered via simple digital experiences.
In addition to this, Plenti seeks to provide investors with attractive and stable returns via investing in consumer loans.
The company has funded approximately $870 million in loans to over 55,000 borrowers since its launch in 2014, providing loan products to creditworthy borrowers in the automotive, renewable energy, and personal lending verticals.
Why did Plenti list on the ASX?
Plenti has listed on the ASX following the successful completion of its IPO, raising $55 million at $1.66 per share. This gave the company an implied market capitalisation of $280 million at the time.
The proceeds from the IPO will be used to drive future lending growth across the automotive, renewable energy, and personal lending verticals. Management notes that this represents a $45 billion+ annual lending opportunity.
In addition to this, the proceeds will support the expansion of its warehouse and other wholesale funding activities.
Plenti CEO and co-founder Daniel Foggo said: "This is an extremely exciting day for Plenti and its shareholders and I am incredibly proud of the effort of the whole team in getting the business to this important milestone."
"However, this is also just the beginning of the next stage in the evolution of our business and I am very optimistic about the opportunities ahead of us given the capabilities of our technology platform and team, which the funds from the IPO will help us capture," he concluded.
