BPS Technology (Bartercard) Announces IPO

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Barter News Weekly BPS Technology Bartercard

BPS Technology, which is the technology company that runs Bartercard, has announced an initial public offering, valuing the company at around $58.5 million, as it hunts for acquisitions.

The offer is set to raise $28m for the Queensland-based firm through the issue of 28 million shares at $1 per share, representing a 2014-15 financial year price-to-earnings ratio of 9 times, and a dividend yield of 7.25 per cent.

Bartercard processes more than $600m in transactions annually. Chairman Murray d’Almeida — who founded Retail Food Group and co-founded Donut King — said the IPO would underpin a new growth period for Bartercard as it sought to reach upwards of 160,000 cardholders in the next five years.

“This will be achieved through a combination of organic growth, particularly in the US and UK, and the acquisition of individual trade exchanges,” he said.

BPS Technology also owns the cloud-based Software-as-a-Service (SaaS) platform that powers the Bartercard trade exchange business, TESS, and Bucqui, a mobile loyalty, rewards and payments application for SMEs.

“Funds raised through the IPO will also facilitate the rollout of our innovative cloud-based software platform, the TESS Platform, to other trade exchanges globally,” Mr d’Almeida said. BPS, which would additionally look to expand its Bucqi platform, is forecasting $51.6m in revenue and $6.5m in net profit after tax for the 2014-15 financial year.

Paterson Securities will lead manage the offer, opening on Thursday and closing on August 20, while Chardan Capital Markets will act as the US Placement Agent.

It is scheduled to begin trading on the ASX on August 21.

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