Update: Raize's first day at the Lisbon Stock Market showing a 19% increase in shares value. Europe's "first crowdfunding company to go public" stock market debut starts off at €2,38 per share.
Last week, the startup company’s public offer for acquisition distributed 750 thousand shares between over 1,400 investors, with demand surpassing the supply by far (4 times higher, to be specific).
The company’s entry in the stock market hit a price of €2,20 accounting for a 10% increase, whereas this afternoon it raised 9%, hitting a €2,38 value. Raize’s shares have been raising interest amongst investors for a while. Over 49,000 Raize shares were exchanged in their market debut, with earnings growing rapidly for the company’s investors.
Raize will proceed with the disbursement of more shares, this afternoon, after the first trade of the almost 50 thousand shares. In the context of its market segment, the investment of Raize’s shares is semi-continuous, with prices being quoted twice a day, and such stocks have a lower turnover which in trade language is known as double-fixing.
The first call resulted in 49,500 shares being exchanged, which accounts for 6,6% of the company’s free float.
Two-steps in Raize’s stockmarket trade – the double-fixing process
At 8h00 there is a first call at the end of which market orders are transmitted to the central order book. At 10:30 a new market value is calculated.
From 10h30 to 14h00 there is a trading-at-last operation in which the market value isn’t subject to price discovery, meaning that those who want to buy shares for €2,20 can do so immediately. Market orders affecting share values will continue entering the central order book over that period, with prices now re-calculated.
The second call of the double-fixing will happen each day between 14h00 and 15h30, with new bids for new share prices, and finally, at 16h00 there is the final trading-at-last session.
Raize doesn’t place their assets on the stock market in a continuous way, it does it in a two-step process – this market trade species is foreseen as a double-fixing trade process.
Last week’s successful public acquisition offer amounted to a €1,5m value
Headed by José Maria Rego, Raize concluded last week a successful round of negotiations for his company’s takeover bid, which involved 1,419 investors. With an estimated initial market capitalization of the business of €10m, the takeover bid involved both retail and institutional investors, with the offer being supported by a subscription of 369%.
Raize provides loans to small to medium-sized enterprises (SME), and in so far 31 thousand investors have become affiliated with the platform. Focused on SME lending it has financed and supported companies in a total of €15,5m, accounting for 774 operations, accordingly to Euronext Lisbon. Accordingly to Euronext, Raize is Europe’s “first crowdfunding company to go public”.
Euronext circulated a press release today welcoming the company to the Euronext Access market, which is “open to all sizes, maturities or industries” and works as a “gateway market for companies seeking simplified access to listing and improved visibility”.
The press release showed that Raize “had already announced an additional sale of 10% stock to be executed at predefined prices, between €2,2 and €4 (…) lasting for 6 months“.
Last week, the company had already anticipated that there was a strong dynamic in the shares, foreseeing that the first days of negotiations would be very lively.
“The 18th of July is our first day at the stock market, it is crucial that we show readiness to reply to our investors’ demands,” stated José Maria Rego, Raize’s co-founder.
“Taking the company public and broadening the investor base will boost our reputation and presence in the market, with a very positive impact on growth”, said the co-founder in his official statement to Euronext.
[Update 18h20: this afternoon the company’s shares were valued at €2,38 having increased 19% since their market debut.]