Asian e-commerce firm iBuy seeks $37M in IPO
Newly incorporated e-commerce business iBuy Group Ltd is looking to raise $37 million through a fully underwritten initial public offering (IPO). The proceeds of the sale will be used to pay for fund advertising and acquisitions, according to Business Spectator.
The sale of 115.6 million iBuy shares is managed by Canaccord Genuity Australia Ltd. The said shares are prices at $0.32 apiece. In conjunction with the IPOP, new shares worth $7 million will also be issued through convertible notes. This would bring iBuy's total capital raising target to $44 million. The e-commerce firm is scheduled to start trading on the ASX on Friday, the report detailed.
From the share sale proceeds, $31.5 million will be used to pay for e-commerce websites in Hong Kong, Singapore and Malaysia. These websites are BeeCrazy.hk, Deal.com.sg, Mydeal.com.my and Dealmates.com. The acquisition of these sites will allow iBuy to generate revenue through a sales margin from the product sales and a commission on services, the report explained.
Entrepreneurs Lucas Elliott and Patrick Grove incorporated iBuy just four months ago. After the iPO, Elliot and Grove will have a 25% stake on iBuy through their company Catcha Group. The said group presently owns 100% of the e-commerce firm and will hold on to its iBuy shares for two years after they start trading, Business Spectator reported.