Australian property technology company, Openn Negotiation has lodged a prospectus with the Australian Securities and Investment Commission, seeking to raise a maximum of $9 million via an initial public offering, followed by a listing on the ASX.
The company, which was founded in Perth in 2016, offers a proprietary cloud-based software platform that facilitates the sale of residential property online through a transparent process.
Openn’s technology facilitates a real-time, online bidding process to achieve the market value for a property, through competitive tension.
The transparency of the platform builds trust between agent and buyer, whilst ensuring a maximum price for the seller.
The news comes only weeks after Openn announced it had achieved $2 billion worth of property sales on the platform.
Under the initial public offering, Openn plans to issue 45 million shares at an issue price of 20 cents per share to raise up to $9 million (before costs of the IPO).
The offer is fully underwritten by the lead manager to the IPO, financial services firm Euroz Hartleys, on a conditional basis.
Funds raised through the offer will be used to facilitate Openn’s expansion to meet industry demand, specifically in Australia, New Zealand, and North America markets.
The prospectus said Openn planned to scale up operations; further develop its technology; conduct marketing campaigns to raise brand awareness; explore expansion of the business into the US market; explore exploitation of core transaction data; and investigate providing complementary services through its online platform.
“With approximately 55,000 registered users across Australia, over 3300 agents adopting the technology and approximately $2 billion of property sales so far, the Openn platform is being recognised as an industry enabler, delivering a flexible and transparent transaction alternative,” Non-Executive Chairman Wayne Zekulich said in a statement in the prospectus.
Branching into the US market and exploring international expansion aligns with the company’s long-term vision and growth strategy.
According to the prospectus, the offer will officially open on May 17 and close on May 24, with shares due to be issued on June 7 and scheduled to commence trading by June 11.
