Splitit gains 90 pct on first day after Australia bourse IPO

(Reuters) — Splitit, which helps businesses with instalment payments, said on Tuesday it raised A$ 12 million ($ 8.6 million) in an initial public offering on the Australian Securities Exchange (ASX).

In its first day of ASX trading, the U.S.-Israeli company rose 90 percent to 38 cents from its IPO price of 20 cents that initially gave the firm a market value of A$ 54 million.

Splitit’s technology enables customers to pay for purchases with an existing debit or credit card by splitting the cost into interest and fee-free monthly payments.

Splitit said it intends to apply the funds from its capital raising to strengthen its sales and marketing to accelerate merchant acquisition and build distribution channels, as well as to penetrate additional markets and countries. Proceeds will also go toward developing next generation mobile solutions and a mobile wallet, it said.

The company is headquartered in New York and has an R&D center in Israel and offices in London, It said it plans to establish itself in Australia for its expansion into the Asia-Pacific region.