Fintech Kyckr scales back raising

Fintech business Kyckr has scaled back the size of its proposed initial public offering and increased the size of the free float to bankroll its global expansion plans.

After initially proposing to raise between $6 million and $8m by floating on the ASX in June, Kyckr slowed down the listing process and will now raise a maximum of $6m and offer 35 per cent of the company to new external investors.

“We have purposely slowed it down because we didn’t want to fall into a listing amid all the noise of the June-July period. There will be more clear air in the August period,’’ said managing director David Cassidy.

“Time has moved on, our plans are clearer and more concise about our needs. Our needs are less to achieve us being a profitable business.’’

The new roadshow with investors will start today after initial meetings both locally and offshore were held in May.

While Foster remains the lead broker on the issue, the company has now also brought on board Shaw and Partners.

Kyckr provides its clients in the financial services sector with a range of “Know Your Customer” compliance services, selling corporate data in exchange for a subscription fee.

Its network of corporate data includes 70 million legal entities from 150 registries in 88 countries. While the company does not own any patents or trademarks, it is banking on benefiting from a tightening of anti-money-laundering and counter-terrorism financing regulation across the world.

Funds from the listing will be used to market the business in Europe and Asia as well as move its systems to the blockchain.

Kyckr will offer a maximum of 30 million shares at 20c each, which will give Kyckr a market capitalisation post listing of up to $26.6m on a fully diluted basis.

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Source: Fintech Kyckr scales back raising – The Australian