Open Investing Limited (“Open Investing” or “the Company”) is pleased to announce the successful lodgment of its Prospectus with the Australian Securities and Investments Commission (ASIC) in order to raise up to $10 million.
Open Investing is a unique offering in the market that is designed to provide ordinary or retail investors with access to unlisted growth and pre-IPO company investments. These investment categories are currently restricted to professional and sophisticated investors (called ‘wholesale’ investors). Managed funds and other wholesale investors are increasingly focusing on pre-IPO investments due to the potential to generate outsized returns, while retail investors are still only able to invest at initial public offering (‘IPO’) stage, generally at a much higher valuation.
Open Investing Founder and Managing Director Brett Tucker identified an opportunity to disrupt the market for private company investing through a novel investment process within a public company structure.
Mr. Tucker is following in the footsteps of his identical twin brother, Wilson Tucker who was recently elected to the WA parliament with less than 100 votes through the use of a novel preference voting strategy with the aim to gain political representation for everyday Australians. Brett founded Open Investing with a similar goal to level the capital market playing field for everyday investors.
Open Investing will use the capital raised from its shareholders to invest in carefully vetted ‘wholesale only’ offers in prospective companies which are intending to list on the ASX in a short timeframe. These investments will be distributed to the Open Investing shareholders as each investment company reaches its IPO on the ASX, less a small portion of shares retained as a fee.
Effectively the goal is to recycle all cash invested in Open Investing in the form of ‘wholesale priced’ company shares which, due to the uplift in value as each company reaches IPO, are worth substantially more than the cash each investor originally deposits – reflecting the rewards (and risks) of private-to-public company investing.
The other main benefit to investors is the combined industry networks and experience of the board of Open Investing, which will be used to source and carefully select the most prospective investments possible.
The wholesale investments we hold will be distributed at the commencement of each investee company’s IPO for two reasons; to satisfy legal disclosure requirements and to give our investors the freedom to make a trading decision over the shares of each company they now hold.
The Prospectus offers 100 million shares at an issue price of $0.10 per share to raise up to $10 million with a minimum share subscription of $3 million representing the issuing of 30 million shares at $0.10 per share. All funds raised will be used for investing activities, less a capped brokerage fee of 2.5%. The working capital of the Company is to be funded by its founder.
Mr Brett Tucker, Managing Director of Open Investing, said:
“The laws around private company investing were put in place nearly 20 years ago and have worked to limit these investment opportunities to a select number of wealthy and professional investors. Retail investors, regardless of their individual investment experience and risk tolerance level, are still missing out on the higher return potential of private compared to public company investing.
We are excited to open the world of pre-IPO investing to the public through Open Investing. We operate differently to a traditional managed fund - our goal is to distribute all investments we make to our retail clients so they can make trading decisions on a company-by-company basis. We also do the work of sourcing and screening pre-IPO companies, only selecting those which have significant upside potential through a planned IPO, which are not otherwise available to the public.”
For more information please visit - www.openinvesting.com.au