Quiet NZAX debut for Pushpay

TOM PULLAR-STRECKER
Last updated 18:06 14/08/2014

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Mobile payments company Pushpay has had a quiet debut on the junior NZAX market.

The stock remained untraded for much of its first day as a public company, with no shareholders offering to sell their shares.

However, by the close, 2500 shares had changed hands at an average price of $1.484. Pushpay's shares had listed with a nominal value of $1, valuing the 43-person company at $50m. Based on its closing price of $1.48, its market capitalisation is now $74m. 

Pushpay runs a cloud-based service that is used by 240 businesses and charities to collect money from mobile-phone users.

The company says people can make payments from their mobiles within 10 seconds.

Two-thirds of its customers are in the United States, where some churches use its payment platform as an alternative to passing around a collection bowl among parishioners.

Pushpay said it could break even once it signed up 1000 customers and its "medium-term" goal was to increase its customer base to 2000 merchants.

The company raised $9m from private investors shortly before listing on the NZAX, but did not elect to raise capital through the float itself.

Chairman Bruce Gordon said the private offer had attracted strong support from investors who understood the benefits of its technology.

The money it had raised would be used to fund its purchase of Wellington mobile marketer Run The Red and to accelerate Pushpay's growth in its "key markets" of the US, Canada and Britain.

Pushpay agreed in May to pay up to $5m for Run The Red, but it said the final price, which was dependent on performance, would now total no more than $4.5m.

The company said revenue from its payment platform in June was $46,000 and its revenues for the month totalled $325,000 once Run The Red's business was included.

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