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

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

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