AAPL 165.84 0.5091% MSFT 400.96 0.461% GOOG 157.95 1.4321% GOOGL 156.28 1.4212% AMZN 177.23 1.4889% NVDA 795.18 4.3543% META 481.73 0.1372% TSLA 142.05 -3.4002% TSM 129.75 1.6053% LLY 731.33 0.6912% V 272.33 0.9452% AVGO 1224.46 1.6394% JPM 189.41 1.9429% UNH 491.23 -1.9755% NVO 125.26 2.0781% WMT 60.14 1.0247% LVMUY 168.89 0.4222% XOM 120.57 0.5756% LVMHF 851.89 0.4528% MA 456.75 0.2986%

Kalkine IPO Report

Is this the right time to exit from Beforepay Group Limited?

Feb 16, 2022

Company Overview

Beforepay Group Limited was founded in 2019. The company operates in the Pay on Demand industry, a relatively new concept that appears attractive to potential customers. This business model is witnessing significant growth as customers look for a more flexible and transparent approach to managing their finances.

Initial Public Offering

The company had launched its IPO on the Australian Securities Exchange under the ticker B4P and had sold approximately 10.3 million shares at AU$ 3.41/share. We had covered this IPO in our ‘Kalkine IPO Report’ on December 03, 2021 and had concluded that this IPO was only “Attractive for High-Risk appetite investor” given its relatively new business, scalable business model, and solid growth reported in number of cash outs.

Daily Price Chart (as on February 15, 2022). Source: REFINITIV, Analysis by Kalkine Group

Conclusion

Investors who have invested into this IPO can consider ‘Exiting’ from their position at the closing price of AU$ 1.385 as on February 15, 2022, given:

  • Growth-stage Company: Beforepay is a growth- stage company with a history of losses. We expect the company to incur significant expenses and continuous losses for the foreseeable future.
  • Unable to Access Funding: The company is exposed to funding risk as a fast-growing business. As a result, it is likely to require additional debt and equity capital in the future for its growth and to respond to business opportunities, challenges, or unforeseen events.
  • Default Risk: The company is also significantly exposed to credit default risk by the customers, which could substantially weigh on the group’s overall performance.

*The reference data in this report has been partly sourced from Refinitiv.


Disclaimer-

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

Kalkine Media LLC, an affiliate of Kalkine Equities LLC, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.