DomaCom flags IPO after successful capital raising

DomaCom flags future ASX listing.


By Elizabeth Somerville

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Property investment specialist DomaCom has revealed it plans to publicly list on the Australian Securities Exchange (ASX) in the near future, following the company’s announcement yesterday that it had successfully completed a $7 million capital raising exercise.

“Of course our plan is to list as soon as possible,” DomaCom chief executive Arthur Naoumidis told financialobserver.

“Our target is to get $100 million in property in the fund, then we’re going to aim for an initial public offering.

“We’re hoping this will be sometime mid next year.”

In the meantime, DomaCom would continue to focus on growing the fund, which had already brought on a number of dealer groups in 2014.

“Now that we’ve got the money, we’ll focus on sales and growing the fund,” Naoumidis said.

“Clearly someone is going to be the property exchange in Australia and we want it to be us.

“That’s why we want to float as soon as we’re able.”

The $7 million in capital was raised through an oversubscribed equity placement, which had been made to new and existing professional and sophisticated investors at a post-money valuation of $24 million.

The funds raised in the placement, which was assisted by Axstra Capital, will enable acceleration of DomaCom’s business plan, including the launch of its equity release products for senior Australians, which is currently targeted for the first half of 2015.

“We were surprised at the level of interest and the speed at which we secured funding from both new and existing investors,” Axstra Capital owner Reuben Buchanan said.

“The DomaCom solution to property investing is a game changer in so many aspects.

“Not only is it the first platform of its kind in Australia – it is the first in the world.”

Nauomidis said the capital raising put DomaCom in a strong financial position to commercialise the fractional property investment model and bring complementary products, such as the equity release products, to market.

“The support shown by our investors, many of whom are from the financial services industry, demonstrates a high level of confidence in the company and the investment model we have created,” he said.

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