New mobile app expands IPO access


By Darin Tyson-Chan

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Fintech business OnMarket BookBuilds (OMB) has launched a mobile application enabling investors to access initial public offerings (IPO) and placements via their smartphones.

OnMarket alerts investors to all of the current IPOs on the ASX and provides access to information about the companies involved, including videos, third-party research and the full prospectus.

It also allows investors to apply for shares in the IPOs directly.

OMB chief executive Ben Bucknell said the motivation for launching the application was to allow investors greater access to IPOs and to allow the organisations involved greater access to capital.

“Last year only 16 per cent of IPOs were offered to the public,” Bucknell said.

“Over the last five years there was $66 billion worth of placements and $20 billion worth of IPOs that weren’t offered to eligible investors.

“Thinking about it from a company’s perspective, why shouldn’t they be able to access all the capital available to them in Australia?

“Why shouldn’t each of you and your parents and your self-managed super funds be able to bid in on exactly the same terms as the big end of town?”

He said there was currently $600 billion in self-managed super funds that was not getting access to IPOs and placements along with a significant amount of self-directed investor money.

“So the product we’ve launched today is born out of the belief that we can use technology to empower investors,” he said.

“We are democratising capital raisings.

“We are bringing investors to the capital markets and the capital markets to investors.”

Prime Minister Malcolm Turnbull, who attended the launch, said support for initiatives such as OnMarket was a necessary part of his government’s agenda.

“There is no question that if we are to remain a high-wage, generous social welfare net, first world economy, we must be more innovative, we must be more competitive, and we must be more productive,” Turnbull said.

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