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Global Technology Trading and Payment Company BPS Technology Launches IPO
Global technology trading and payment platform provider BPS Technology (“BPS” or “the Company”) today announced an initial public offering, capitalising the Company at approximately A$58.5 million.
BPS has three complementary divisions:
Bartercard – the world’s largest barter trade exchange with a 23 year track record of profitable operations processing over 1.8 million transactions with a value in excess of $600 million per annum;
TESS - a scalable, cloud-based software-as-
Bucqi – an innovative mobile loyalty, rewards and payments application for SMEs based around patented technology.
The IPO heralds a new phase of growth for BPS Technology as the Company seeks to expand its USA and UK operations, take advantage of consolidation opportunities in the highly fragmented global trade exchange market and implement the roll out of its global software as a service offering, TESS and mobile loyalty and payments platform, Bucqi.
The IPO will raise $28 million through the issue of 28 million shares at a price of $1.00 per share, representing a forecast FY15 price earnings ratio of 9.0 times and a dividend yield of 7.25% based on the Offer price of $1.00 per share.
BPS Technology Chairman Murray d’Almeida said: “The IPO is a unique opportunity to invest in a highly profitable business with a 23 year track record and a network of more than 24,000 merchants and 54,000 cardholders across 75 offices in 7 countries.
“Bartercard is already the largest player in the burgeoning trade exchange industry, which globally is forecast to settle transactions worth US$20 billion per year and grow at 15 per cent per annum.
These materials are not an offer for sale of the Shares in the United States. The Shares may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of the Shares in the United States will be made by means of a prospectus that may be obtained from the Company and that that will contain detailed information about the Company and its management, including financial statements.
“The IPO will underpin a new period of growth for Bartercard as we seek to reach a target of more than 160,000 cardholders across 15 countries in the next five years. This will be achieved through a combination of organic growth, particularly in the United States and United Kingdom, and the acquisition of individual trade exchanges.
“Funds raised through the IPO will also facilitate the roll out of our innovative cloud-based software platform, the Tess Platform to other trade exchanges globally. Already the Tess Platform settles 1.8 million transactions worth $600 million annually and has been adopted as the industry standard by the International Reciprocal Trade Association.
“Our mobile loyalty program Bucqi also provides significant expansion opportunities as we deploy it through our existing global Bartercard merchant network and beyond to the broader business community,” Mr d’Almeida said.
BPS has a deep and trusted relationship with its members, achieved by continually delivering value over time. Sixty six per cent of Bartercard’s merchants have traded in the system for more than 5 years and 31% have traded for more than 10 years – twice the average life span of a small business in Australia. Bartercard members have an average total transaction value of more than $25,000 per annum.
BPS Technology has a highly experienced board of directors with a strong track record operating and growing successful companies in the e-commerce, retail, franchising, payments and financial services sectors. The directors include: Chairman Murray d’Almeida, Founder of Retail Food Group and Co-Founder of Donut King; Independent Non-Executive Director Andrew Pipolo, a former Managing Director of PayPal Australia; and Independent Non-Executive Director Tony Lally, previously CEO of Sunsuper.
In addition, BPS’ management team comprises Chief Executive Officer Trevor Dietz, Managing Director Brian Hall and Chief Financial Officer Tony Wiese. Mr Dietz, Mr Hall and Mr Wiese each have an average of more than 25 years proven experience in delivery in the trade exchange, digital payment systems and software industries internationally.
In FY15, BPS is forecast to generate $51.6 million in revenue, $6.5 million in net profit after tax and pay a dividend of 7.25 cents per share. The Offer opens on 31 July 2014 and will close on 20 August 2014, with trading commencing on the ASX on 29 August 2014. Details of the Offer are contained in the Prospectus lodged with ASIC.
Patersons Securities is the lead manager of the offer, with Chardan Capital Markets acting as the US Placement Agent.
Investors interested in applying for shares will need to complete the Application Form in the Prospectus. Prospectuses can be downloaded from BPS Technology’s website at: http://www.bpstechnology.com/
Notes to Editors:
[Key Offer Statistics]
Offer Price per Share
Maximum number of Shares issued under the Offer
Shares on issue as at the date of this Prospectus
Maximum number of Shares on issue following the Offer
Market capitalisation at Listing
31 July 2014
28 August 2014
Trading expected to commence on the ASX
4 September 2014
About BPS Technology
BPS Technology Limited is a global technology trading and payment platform provider whose proprietary technology drives customer and merchant growth for SMEs.
Headquartered in Queensland, Australia, BPS has three complementary international technology platforms, which include:
Bartercard – The world’s largest multi-site, multi-national and multi-currency digital Trade Exchange Platform
TESS – An industry-leading Trade Exchange software platform, and
Bucqi – A merchant-centric mobile loyalty and B2C payment platform.
The three complementary offerings will be rolled out internationally by BPS and allow the Company to earn fees on all transactions facilitated by the platforms.
BPS Technology employs more than 300 staff globally, with 75 offices across 7 countries, including 40 offices in Australia, and offices in New Zealand, UK, USA, Thailand, UAE and Cyprus.
For more information, visit: www.bpstechnology.com
For further information, please contact:
Chief Executive Officer
T: 07 5561 9000
M: 0413 746 949
T: 02 9955 9899