Sezzle's share price rises on planned Nasdaq listing
Australian fintech company Sezzle has seen its share price rise on plans to provide access to US investors with a listing on the Nasdaq Stock Exchange.
The share price of ASX-listed buy-now-pay-later (BNPL) company Sezzle has received a boost from its plans to provide equity access to US investors via a stateside listing on the Nasdaq exchange.
Sezzle announces Nasdaq listing ambitions
According to an announcement made by Sezzle on 13 March, the company plans to list common stock for trading on the Nasdaq Global Market using Chess Depositary Interests (CDIs). Following the listing, Sezzle's common stock will continue to trade on the Australian Securities Exchange (ASX).
Charlie Youakim, Sezzle's Chairman and CEO, said that the chief purpose of the listing is to tap a greater range of investors, as opposed to raising capital.
'A listing on the Nasdaq is a natural evolution for Sezzle given the Company is already filing the necessary reports with the SEC,' Youakim said.
'Although we are not seeking to raise capital as part of the Nasdaq listing, we are excited to expand the universe of potential investors to the United States.'
Prior to the listing, Sezzle said it would remove the Foreign Ownership Restricted (FOR) United States (US) person prohibited tag from the CDIs, which prevents them from being sold on the ASX to US persons unless an exemption is made.
Nasdaq listing will necessitate reverse share split
Listing on the Nasdaq Global Market will require Sezzle to perform a reverse split of its common stock, to satisfy the minimum US$4.00 bid price as required by Nasdaq's initial listing requirements.
Sezzle said that if its listing plans are approved by shareholders, it will effectuate the reverse split before its stocks make their debut on the Nasdaq Global Market so that the bid price of the CDIs satisfies this requirement.
Sezzle's share price leapt around 10% on the morning of the announcement to around 58.5 cents. Its share price has since slipped back to around 56 cents, yet has still risen by over 35% since the start of 2023.
Strong Q4 performance drive share price gains
A key driver of Sezzle's share price gains since the start of 2023 has been solid profitability in the final quarter of 2022.
According to Sezzle's December business update, strong revenue growth helped the company to achieve its second straight month of profitability, as well as bring the final quarter of 2022 into profitable territory.
In December Sezzle's revenues rose 15.7% compared to the same period in 2021 to hit $19.9 million. This figure also marked an increase of 1.7% compared to the previous month.
Both November and December were profitable months for Sezzle, enabling it to finish the year with a profitable quarter after sustaining heavy losses throughout most of 2022.
Sezzle's strong results in December and the upbeat outlook of management nonetheless arrive during a difficult period for the Australian BNPL sector, whose key players saw share prices wither in 2022.
Pressures on BNPL platforms could be further compounded in 2023 by calls for tighter regulation of the market. Towards the end of November, the Australian Treasury released an options paper outlining a trio of regulatory options for the BNPL sector.
The strictest of these options involves applying to BNPL platforms the same responsible lending requirements that are currently in force for credit card providers, and has received the strongest support from consumer groups and community legal centres.
Take your position on over 13,000 local and international shares via CFDs or share trading – all at your fingertips on our award-winning platform.* Learn more about share CFDs or shares trading with us, or open an account to get started today.
* Winner of 'Best Multi-Platform Provider' at ADVFN International Finance Awards 2022
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
You might be interested in…
Find out what charges your trades could incur with our transparent fee structure.
Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.