Financial management software provider Netwealth Group has made a strong debut on the Australian market, with its shares climbing almost 44 per cent on its first day of trading.
Netwealth shares were up $1.62, or 43.8 per cent, to $5.32, at market close on Monday, compared to its offer price of $3.70 per share.
The Melbourne-based firm provides a web-based platform to manage superannuation and other types of investment accounts for financial advisers and fund managers.
Netwealth, established by finance industry veteran Michael Heine in 1999, made an initial public offering of approximately 71.3 million shares which it expects will raise about $264 million.
Some of those funds are tagged for the company's expansion in a part of the financial services industry traditionally dominated by major banks and financial institutions.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
The IPO comprises 30 per cent of shares on issue, with most of the balance held by brothers Michael and Leslie Heine, and Michael's son and joint managing director, Matt Heine.
In 2010, Netwealth had about 14,000 accounts and $2 billion in funds under management and administration, but as of September that had grown to about 56,000 accounts and $15.7 billion.
The company is forecasting around a $20 million lift in revenue to about $80 million in 2017/18, derived mainly from fees - for account administration, management and transactions.
