Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Retail investors powering Sharesies valuation
The new direct-to-consumer investment platform Sharesies, a New Zealand-based shares platform which opened in Australia this year, has embarked on another capital-raising round, valuing the four-year old company at NZ$400 million (A$384 million) or more.
It is understood Sharesies is seeking NZ$50 million in the latest capital top-up – the third or fourth in a series dating back to the firm’s launch in 2017 – with US private equity money expected to fund half of that.
According to sources familiar with the matter, the “pre-money” figure touted to potential investors values the platform about NZ$450 million, compared to just NZ$24 million in 2018 when TradeMe tipped in $4 million to buy a 16 per cent stake late in 2018. TradeMe remains the single-largest equity-holder in Sharesies, owning just over 15 per cent of the company.
The most recent capital-raising effort follows a drive late last year that saw Sharesies bring in NZ$25 million from both existing and new shareholders (notably, US venture capital firm, Amplo) to help fund its expansion into Australia.
Sharesies officially opened in Australia in April this year, with the marketing campaign going live at the end of August.
Late last month, the platform – which boasts over 400,000 users – was stung with a formal warning from NZ’s Financial Markets Authority (FMA) for breaches of anti-money laundering rules.
At last count, Sharesies reported about NZ$1.5 billion on the platform accrued via fund investments or share-trades on the NZ, Australian and US markets – the latter two jurisdictions only recent additions to the service mix.
The company restructured its corporate operations last year to reflect the leap across the Tasman with several subsidiaries (including an Australian entity) housed under the Sharesies Group.
Early this August the firm also created a new subsidiary – Sharesies Investment Management – suggesting a leap into funds management could be on the cards.
A Sharesies spokesperson confirmed the capital-raise is underway. The company was founded by Leighton Roberts, Brooke Roberts (pictured) and Sonya Williams.
Investor interest in direct-to-consumer platforms has spiked globally over the last year or two in a trend underscored by the listing of US commission-free broker, Robinhood, earlier in 2021.
Meanwhile, the Australian US share-trading platform, Stake, has raised A$40 million from two private equity firms to fund further growth. Another NZ-owned newcomer to share trading, the Kiwi Wealth-owned Hatch, which offers a similar US stock-trading services as Stake (and Sharesies), has been reportedly slated for potential sale.
