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Summary
- Credit Clear, a technology-based debt recovery company is eyeing an IPO listing by early October this year.
- The Company expects to raise A$15 million at 35¢ a share totalling a $65 million pre-money valuation and $79 million as market capitalisation.
- The Company and its broker Bell Potter are currently meeting fund managers for taking bids for shares in the float.
- Credit Clear, which earned $11.2 million on a proforma basis in financial year 2020, expects revenue of ~A$18 million in calendar year 2020. The rise is backed by surge in demand for its services, after call centres in Philippines closed amid COVID-19 pandemic.
The Australian share market has been gearing up for various IPOs in the year 2020. One of the upcoming players eyeing an IPO is Credit Clear, a technology-based Receivables Management Company focusing on debt recovery.
The Company is addressing the issue of build-up debts experienced by utility, telecom, financial companies, government, and those companies who are providing services to their consumers on post-paid basis.
The Company highlighted that demand for their product has increased during the pandemic after call centres located in Philippines closed.
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Credit Clear Gearing up for IPO
Australian based Fintech Company Credit Clear is eyeing IPO and has roped in Bell Potter to run the IPO Launch. The company expects to raise A$15 million at 35¢ a share which totals to a $65 million pre-money valuation and $79 million as market capitalisation. Moreover, the Company intends to list by early October.
The Company and its broker are meeting fund managers to pursue them to take bids for shares in the float. The Company already had an initial education round of investor meetings to introduce the management team and give more details regarding the Credit Clear business.
According to media reports, the Company will use the proceeds from the capital raising for business growth by investing A$8.8 million for systems development, A$2.1 million for business development, A$2.75 million for working capital and A$1.35 million to pay for the offer.
In 2020 financial year, the Company earned $11.2 million as revenue on a proforma basis, an increase of 0.9 million from $10.3 million recorded in the previous year. The Company incurred a loss of A$1.8 million in fiscal 2020.
For the CY20, the company expects revenue of ~A$18 million this calendar year
A glance through Credit Clear
About the Company
Launched in 2017, Credit Clear serves almost 800 clients from the transport, financial services, and government and utilities sectors across Australia and New Zealand.
Credit Clear operates as a debt recovery company and assists client such as AGL energy Limited (ASX:AGL), Prospa Group Limited (ASX:PGL), Synergy, BMW Financial Services, and Transurban Group (ASX:TCL) to chase customers to pay back unpaid bills. The company charges for each text message or email it sends to the customers instead of charging a commission of 5%-30% on the debt recovered.
The Company also pursues these debtors to pay back the unpaid amount in instalments.
Credit Clear offers smart payment plans that can be customised by the client and allows consumers to choose a payment amount and a period that allows them to payback comfortably.
The Company’s offers international solution and enables payments to be made in any currency and has the capability to translate messages automatically into customers mobile phones default language.
The solutions showcase a campaign and workflow feature that enables customised communication to be sent to customers as per their age, gender, and location. The feature has the ability to decide on the content to be sent, when to send and via which communication platforms like SMS, email, or Instant messenger.
The Company uses Collexit, its proprietary receivables technology software developed by inhouse tech team. Collexit is provided under license to collection agencies.
The Company has a customer services division, known as Credit Solutions, builds and manages debt recovery programs for clients throughout industries located globally.
The Management
The Company is chaired by Mr. Gerd Schenkel. Credit Clear has been founded by Mark Casey Director & Co-Founder and Lewis Romano, Executive Director & Co-Founder of the Company
Mr. Gerd Schenkel is the Chairman and had been associated with companies such as The Boston Consulting Group, National Australia Bank, Citigroup, and Telstra. Recently, Mr. Gerd has been the CEO of Tyro Payments Limited (ASX:TYR) and also served the Federal Government of Australia's Task-force for Small Business Digitisation. He founded UBank and led the digital programme of Telstra.
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Mark Casey is the Director & Co-Founder of Credit Clear. Mark is also the Managing Director of Casey Capital that has more than $2 billion in projects under management. He has above 30 years’ experience in property development, funds management and investment in early stage technology ventures.
Lewis Romano has been an entrepreneur and received “Hot 30 under 30” by Smart Company Australia in 2016. He grew three businesses, one into bespoke fashion e-commerce, one online job site service provider called SpotJobs.com and Credit Clear. He is considered as key personnel for fundamental client and strategic relationships for the Credit Clear business.
