LayBuy NZ - Buy Now Pay Later

[Jaa]

Another NZ company familiar to many is heading for an IPO on the ASX. Not sure if this is the same Laybuy I remember from my youth but regardless its now a buy now pay later company.


The NZ BNPL player was initially looking to raise up to $45 million for its IPO but it is understood the company could now shoot for up to $60 million. The targeted market capitalisation is unchanged at about $200 million.

~

The fresh capital would be used to fund Laybuy's balance sheet, allowing it to increase its loans. Laybuy is active in Australia, New Zealand and the United Kingdom and requires its customers to pay back their purchases in six weekly instalments.

- NZ buy now, pay later outfit Laybuy readies IPO roadshow round two (https://www.afr.com/street-talk/nz-buy-now-pay-later-outfit-laybuy-readies-ipo-roadshow-round-two-20200618-p553ru)

You can use Laybuy to shop online or in store at Briscoes, Glassons, Hannahs, Repco, Mocka etc. https://www.laybuy.com/nz/shop-here

[silverblizzard888]

It made sense for this company to go to the ASX, the space for BNPL is so much bigger and people over there understand it so much more.
At a $200 million valuation its not bad.

[Jaa]

Yes guess it makes sense for them but there is plenty of money in NZ too chasing fewer and fewer companies. Think they might be forgotten about in Aus or taken over at some point.

[frogboy]

A question guys, is it possible for a retail investor to buy into the IPO ?

Thanks

[Cobber]

A question guys, is it possible for a retail investor to buy into the IPO ?

Thanks

It was. but that has now closed. You'll need to now wait for them to list.

[Cobber]

Here is a link to their prospectus : https://laybuyinvestors.com/FormBuilder/_Resource/_module/Rsb7doRVwkel_mWy-7qLGQ/file/Laybuy-Prospectus.pdf

[trader_jackson]

Impairments seem to be running a bit high for a BNPL pureplay...
Not sure how great it is relying on a third party for credit checks... I'm pretty sure it would be better long term to create your own credit checking system... this, along with other factors, has me truly struggling to see what Laybuy's "amazing technology" that is differentiated from other BNPL's...

[Cobber]

Impairments seem to be running a bit high for a BNPL pureplay...
Not sure how great it is relying on a third party for credit checks... I'm pretty sure it would be better long term to create your own credit checking system... this, along with other factors, has me truly struggling to see what Laybuy's "amazing technology" that is differentiated from other BNPL's...

Your platform only needs to work and be scalable. From there it's all about customer acquisition for me, whilst keeping those defaulters down.

Customers don't really care about the technology.... they just want the credit.

AfterPay has a huge first mover advantage though. So will be tough winning mind share.

[frogboy]

Thanks heaps for that.

[Jaa]

Must read article (and comments) by Tim Hunter on NBR about the upcoming float. Also very relevant to Afterpay and the whole sector.

Laybuy floats into Australia's fintech frenzy
https://www.nbr.co.nz/analysis/laybuy-floats-australia-s-fintech-frenzy

Explains well why despite my early interest in the sector, I've never managed to invest.

In short, bubble, bubble, bubblegum.

[winner69]

The bell rings on ASX today ...LBY is ticker

How about 2 bucks on opening

[Cobber]

The bell rings on ASX today ...LBY is ticker

How about 2 bucks on opening

haha... are we buying on the attributes of the company or the tech bubble?? lol

It will be interesting to watch considering PLX are heading that way.

[JeremyALD]

What is happening today. I'm seeing buy orders of $12 and sell orders of $1?

[flyer]

What is happening today. I'm seeing buy orders of $12 and sell orders of $1?

Starts trading at 2.00pm NZ time.

[JeremyALD]

Starts trading at 2.00pm NZ time.

Thank you!

[stoploss]

Current match price is $ 2.20 on just under a million shares. This can move either way , quickly, so just an initial guide .

[winner69]

What a joke.

No, its real

Market cap a lot higher than SKT eh

[Jaa]

Interesting reading the top 20 shareholders, good result for top shareholder Pioneer Capital (https://www.pioneercapital.co.nz/) who has 25.48%, seem to have backed a few winners.

Surprised also to see WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED with a small 0.51% stake. An investor with a long track record of beating the market.

[winner69]

Great NZ success story ...well done

[Cobber]

Great NZ success story ...well done

The guy running this company has pedigree. He's a workaholic with big aspirations. I'm expecting this company to fly.

AfterPay got America.... LayBuy will hopefully own England and Europe.

Australia and NZ were merely test beds for both brands. Looking forward to November for half yearly results.

Incidentally, check out LayBuys LinkedIn page.... every week they are announcing big retail chain sign-ups in England. Sign ups are ballooning.

[JeremyALD]

The guy running this company has pedigree. He's a workaholic with big aspirations. I'm expecting this company to fly.

AfterPay got America.... LayBuy will hopefully own England and Europe.

Australia and NZ were merely test beds for both brands. Looking forward to November for half yearly results.

Incidentally, check out LayBuys LinkedIn page.... every week they are announcing big retail chain sign-ups in England. Sign ups are ballooning.

I agree with your sentiment, but I do wonder if they've left it a bit late for an international expansion. Afterpay has huge amounts of capital and entered the UK 12 months ago, US has more than three BNPL competitors and Australia is saturated by Afterpay & ZIP. Then there's PayPal also entering BNPL.

UK presents the best opportunity for Laybuy, but even with a large share in NZ they only have 13m revenue, so i do wonder if its worth the current price when they might only get 50m to 100m revenue from the UK - and that's if they succeed.

[Cobber]

I agree with your sentiment, but I do wonder if they've left it a bit late for an international expansion. Afterpay has huge amounts of capital and entered the UK 12 months ago, US has more than three BNPL competitors and Australia is saturated by Afterpay & ZIP. Then there's PayPal also entering BNPL.

UK presents the best opportunity for Laybuy, but even with a large share in NZ they only have 13m revenue, so i do wonder if its worth the current price when they might only get 50m to 100m revenue from the UK - and that's if they succeed.

I guess that's the punt we are taking when we're buying into the company at the start of its journey. It's all about the people in the organisation and whether you believe they have the stamina to turn this into a beast or average business that could become a great acquisition target for one of the bigger players.

In terms of getting their claws into the UK market, I like how they have partnered & reduced commission rates for some big well-known e-commerce brands to get their brand in front of consumers. Partnerships are the key here. AfterPay may feel they don't need to do those as they are big enough already. Anyway we'll find out in November. But the race is on :)

[JeremyALD]

Any thoughts on here about Laybuy? It's been absolutely smashed since listing. Currently at 79 cents, after peaking above $2 post listing last year.

They seem to be delivering on all their promises and prospectus with growth above 100% YoY and forecasted to continue. Clearly the market is not buying it though and thinks the company is on the way out?

To me it is the best value BNPL on the market, although it's obviously a very competitive market and they have less cash to invest aggressively in growth.

[Ferg]

I think you partially answered your question in post #22 regarding PayPal.

Is there a DD on this anywhere? What is the current/projected EPS and/or NTA etc.?

I had a look on their website, lots of fancy exponential graphs, bright colours and arrows going aiming North East, but very little I could sink my teeth into regarding "traditional" financials: https://laybuyinvestors.com/investor-centre/

[JeremyALD]

I think you partially answered your question in post #22 regarding PayPal.

Is there a DD on this anywhere? What is the current/projected EPS and/or NTA etc.?

I had a look on their website, lots of fancy exponential graphs, bright colours and arrows going aiming North East, but very little I could sink my teeth into regarding "traditional" financials: https://laybuyinvestors.com/investor-centre/

Yes I did think it might be overvalued at listing with so much competition, but at 150m market cap it seems to be pretty good value compared to the BNPL segments where others are trading on multiples of 20x revenue. I would think Laybuy would be a significant takeover target for z1p or another company looking to get into the industry, or scale more rapidly in the UK.

[Ferg]

Yes I did think it might be overvalued at listing with so much competition, but at 150m market cap it seems to be pretty good value compared to the BNPL segments where others are trading on multiples of 20x revenue.
Was there a DD (elsewhere?) to support the view it was over-valued at IPO? Rather than look at LayBuy relative to other BNPL entities, I would like to know how it's share price compares to the value of it's business. I'm not a fan of revenue multiples. I won't be doing anything in the absence of some fundamentals, but will keep an eye out for this in future. Thanks for the heads up.

[winner69]

Income doubles while share price collapses

Laybuy boss shrugs off share price slide as it targets $1b in sales
https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=12446442

[Panda-NZ-]

Maybe the start of an uptrend. Maybe they can use consultants rather than full time employees to manage their costs.
They'll have the international experience too.

[Panda-NZ-]

Two large 100k shares on the buy side at 50c to provide some support.

88M total market cap now

[winner69]

Laybuy up 9% today

Punters thinking they next in line to be acquired ;)

[stoploss]

Laybuy up 9% today

Punters thinking they next in line to be acquired ;)
ZIP up 9% today , must be next in line …��

[whatsup]

LBY on an uptick after the Afterpay take over, are some S Hers switching into LBY ?

[Gecko]

Slick investor presentation this afternoon. Stated significant traction is being made into ClearPay's market share (currently UK's second largest BNPL provider).

Like their value driven decision to stay clear of alcohol, gambling, firearm and grocery sectors. On track to process hit a billion in sales transactions by financial year end.

A lot to like...except the share price. :confused:

[Cobber]

Slick investor presentation this afternoon. Stated significant traction is being made into ClearPay's market share (currently UK's second largest BNPL provider).

Like their value driven decision to stay clear of alcohol, gambling, firearm and grocery sectors. On track to process hit a billion in sales transactions by financial year end.

A lot to like...except the share price. :confused:

It's a crowded space this BNPL vertical and LBY are probably one of the smallest players out there. They also arrived at the party considerably late. I'm not sure why their CEO keeps repeating the story how he had this idea when AfterPay was light years ahead of him and already in market.

Comparing the early growth trajectory between the 2 companies shows AfterPay clearly had first mover advantage.

LBY's scariest stat right now is how much it's costing them to be relevant in market. Their losses are huge. They're burning through money like there is no tomorrow.

Which begs the question, when they come back to the market for more capital.... what will they price themselves at then? 40c? 35c?

[Cobber]

Trading volume over the last few days has been considerably high. Who's getting out before the 6 month results are published.

[Cobber]

80,000 transactions on their affiliates app for just over a 1 month period. This could turn into a very lucrative revenue stream in its own right.

[Cobber]

I was a bit shocked that Q2 income was only slightly higher than Q1 but listening in on the call, they just paid 1 million for insurance for the year and all affiliation income is not being recognised until its received. So there is a possibility of a large growth spurt in the coming 6 months. They are still bullish on beating $1 billion GMV this financial year. Could be a good price to acquire at.

[Cobber]

One has to wonder if this company is going to exist in a year.

I noticed on LinkedIn, the CEO's wife who is the Brand Creative Manager at Laybuy.... posted that she couldn't attend a sponsored woman's luncheon in London because of covid. I'm praying that the family running the business isn't using Laybuy funds to jettison needlessly around the planet for a lunch!!

Senior staff with valuable IP seem to be exiting. I suppose that's what happens when your vested options are worthless.

[mikeybycrikey]

One has to wonder if this company is going to exist in a year.

It's down almost 65% since the half year results were announced less than 3 weeks ago. That price drop does seem to suggest that it might be the end of the road.

They probably need a cap raise within the next 12 months. How do you raise capital when the market cap is only slightly more than the cap required?

[Muse]

It's down almost 65% since the half year results were announced less than 3 weeks ago. That price drop does seem to suggest that it might be the end of the road.

They probably need a cap raise within the next 12 months. How do you raise capital when the market cap is only slightly more than the cap required?


It doesn't leave the company with any good options. Any large retailers could well be wary of LBY if they glance at its charts - no one wants a supplier on the ropes or who might not be there in a year or two. Any capital raise would have to be at a massive discount to spot prices to lure investors to fund it. Many investors will have lost heaps and reluctant to put more capital in and if they don't will be diluted to hell.

Pioneer Capital floated this and you just have to look at their other IPOs to see how their other companies faired...Moa, SLI, Orion...all delisted or the original operating companies sold off for pennies on the dollar. I can't help but think this will be the same. Those guys need a new business model - can't keep raising funds on the back of IPO success stories when they inevitably flop each time - especially when their master is the NZ Super Fund....

[nztx]

SP looks like it was all over the place like a hairy dog on Fri 10th

Open 15.5¢ High 22.5¢ Low 15.5¢

ASX Close 21.5c

[Cobber]

SP looks like it was all over the place like a hairy dog on Fri 10th

Open 15.5¢ High 22.5¢ Low 15.5¢

ASX Close 21.5c

Heading into penny stocks.

[nztx]

Heading into penny stocks.


You telling me nothing - it's been a long steady decline from $1.70 down to $0.15
Sep 2020 to date.. not much love for LBY shown on ASX for most of that journey

Dscl: not a holder - not my cup of tea

[RupertBear]

You telling me nothing - it's been a long steady decline from $1.70 down to $0.15
Sep 2020 to date.. not much love for LBY shown on ASX for most of that journey

Dscl: not a holder - not my cup of tea

Sadly the Bear likes a good cup of tea and is a holder of QFE, SPT and Z1P :( Been a stinker investment thats for sure. Should have pulled the parachute cord quite some time ago and too close to the ground to pull it now :crying:

[Cobber]

Sadly the Bear likes a good cup of tea and is a holder of QFE, SPT and Z1P :( Been a stinker investment thats for sure. Should have pulled the parachute cord quite some time ago and too close to the ground to pull it now :crying:

If Zip were to acquire Sezzle.... I think you might be onto something. Both those companies are at least 10 x bigger than LBY already. So you may have an escape clause if you are patient.

LBY on the other hand.... could be a 20 year project just to get back to $1.70... LOL

The only growth in share price that I can see is via profitability.

[nztx]

LBY down to an Aussie Dime (10c) at close

Not much love being shown for it on ASX

All the LBY Quarterlies glossed up for growth of everything in sight
FY 21 & H1 22 Bottom line red ink UP too

20 years and 20 Capital raises along the way just may rescue the job :)

[Cobber]

LBY down to an Aussie Dime (10c) at close

Not much love being shown for it on ASX

All the LBY Quarterlies glossed up for growth of everything in sight
FY 21 & H1 22 Bottom line red ink UP too

20 years and 20 Capital raises along the way just may rescue the job :)

Fund managers bailing left, right and centre.

Not sure who will be left for a capital raise. And does anyone have the appetite for this amount of risk when war is knocking on Europe's door.

These guys are probably the only people who can match Grant Robertson when it comes to spending without any return.... LOL

[nztx]

Fund managers bailing left, right and centre.

Not sure who will be left for a capital raise. And does anyone have the appetite for this amount of risk when war is knocking on Europe's door.

These guys are probably the only people who can match Grant Robertson when it comes to spending without any return.... LOL


Any improvements on today's close 8.9 c ? ;)

this thing must be looking like a take out target for any that dare endure some punishment ? :)

Will Robbo step up with a large dallop of Life Support like AIR ? ;)

[Muse]

Buy now, pray later.

[nztx]

Buy now, pray later.


Are you sure you're in the correct thread ? :)

Perhaps Push Pay might be interested in a bit of "Grab LayBuy" for diversification
to amuse their support base & keep the Churchy punters in funds
for their Churchy tithes clipping the ticket on both in the process ? ;)

It could be the steal of decade for PP :)

[Muse]

Are you sure you're in the correct thread ? :)

Perhaps Push Pay might be interested in a bit of "Grab LayBuy" for diversification
to amuse their support base & keep the Churchy punters in funds
for their Churchy tithes clipping the ticket on both in the process ? ;)

It could be the steal of decade for PP :)

I am utterly confused by your post…especially the Push Pay reference?

[nztx]

I am utterly confused by your post…especially the Push Pay reference?


"Buy Now - Pray Later" - sorry to confuse things :)

[Muse]

"Buy Now - Pray Later" - sorry to confuse things :)

ahhh - got it! derr . was quite obvious too. sors

[Cobber]

These guys love charts that show everything going up.... except if it's the size of the loss. I hate to think how bad that's going to look when they publish their end of year financials.

[nztx]

These guys love charts that show everything going up.... except if it's the size of the loss. I hate to think how bad that's going to look when they publish their end of year financials.


Same MO as NZX: HMY - when the bottom line looks .. well - focus in on & glorify everything else heading
upwards hoping nobody notices no mention of bottom line Loss :)

[winner69]

Loss ended up at $51m …..big fraud losses in UK didn’t help

Rohloffs still upbeat ….all good

Shares out of escrow now …… 8 cents at the moment ..probably was hoping they would still be $1.40 odd

Never mind 2023 is another year

[troyvdh]

I really detest companies like this...praying on the most vulnerable to make a dollar...just like casinos.

[Cobber]

https://www.remixmagazine.com/lifestyle/in-conversation-with-robyn-rohloff-the-lady-behind-laybuy/

I can think of 52 million reasons not to go global.

They are such a long way behind their competition who have already penetrated North America and Europe. Losses will only increase substantially. And who will actually be willing to fund that expansion??

I mean during covid when everything moved online, its not like they saw huge growth.

[nztx]

https://www.remixmagazine.com/lifestyle/in-conversation-with-robyn-rohloff-the-lady-behind-laybuy/

I can think of 52 million reasons not to go global.

They are such a long way behind their competition who have already penetrated North America and Europe. Losses will only increase substantially. And who will actually be willing to fund that expansion??

I mean during covid when everything moved online, its not like they saw huge growth.


Good points there - Cobber

Can't leave screaming steadily deepening trench of Losses with no forward future plan on how they
will be eventually (if they indeed are) recovered or to be at some point

[Cobber]

Good points there - Cobber

Can't leave screaming steadily deepening trench of Losses with no forward future plan on how they
will be eventually (if they indeed are) recovered or to be at some point

And now Apple enters the market :

https://appleinsider.com/articles/22/06/06/apple-launches-its-own-buy-now-pay-later-service-in-apple-pay

Game over.

[nztx]

And now Apple enters the market :

https://appleinsider.com/articles/22/06/06/apple-launches-its-own-buy-now-pay-later-service-in-apple-pay

Game over.


Guess no-one will be remotely interested in a take-out either :)

[Cobber]

Guess no-one will be remotely interested in a take-out either :)

Here’s more data about Apple’s service :
https://www.inc.com/jason-aten/apple-just-quietly-revealed-apple-pay-later-it-will-completely-upend-125-billion-buy-now-pay-later-industry.html

Unlike BNPL platforms, Apple’s service is baked directly into Apple Pay. They already account for 5% of all credit card transactions. That number must be North America only you’d think.

[winner69]

Buy now, pay later company Laybuy has flagged a potential exit from its UK business, previously described as its “growth engine”, if a takeover does not eventuate. (NBR)

https://stocknessmonster.com/announcements/lby.asx-2A1382320/

Becoming a bit of a joke this outfit

[Cobber]

Buy now, pay later company Laybuy has flagged a potential exit from its UK business, previously described as its “growth engine”, if a takeover does not eventuate. (NBR)

https://stocknessmonster.com/announcements/lby.asx-2A1382320/

Becoming a bit of a joke this outfit

It’s all becoming desperate stuff now. Off the back of a $51 million loss, I’m not sure if any part of this outfit stacks up.

[Nor]

Silly nonsense this buy now pay later business. Just credit dressed up differently to pander to those who imagine the world has changed radically in all sorts of ways in their short lives.

[troyvdh]

Nor ...thanks.

[Nor]

You're welcome.

[whatsup]

In the old days ( 1950's - 90's ) the BNPL termlogy was called Laybuy , they dont have to reinvent the wheel.

[Nor]

But you didn't get your stuff until you'd paid for it. I think, I never did it.

[tim23]

But you didn't get your stuff until you'd paid for it. I think, I never did it.

You would be correct on that score, I used it from time to time (a long time ago). Don't quite get the whole concept, why not use your credit card?

[Nor]

Presumably because one has zero will power.

[troyvdh]

Nor...thanks.

[percy]

You would be correct on that score, I used it from time to time (a long time ago). Don't quite get the whole concept, why not use your credit card?

I had a toy shop in the 1970s,.
Before Credit cards came in customers would start putting toys away for Christmas in July/August,and start paying off their purchase.When they came into the shop they would often see something new and add it to their laybuy.
Layby was good as it meant customers would make regular visits to my store.
Come Christmas it was shear hell trying to find the laybys in the store room.Huge swings down to a few matchbox cars.[Do not recall ever losing one.]
At Christmas I would lose customers who would go to The Farmers as they offered credit accounts.
Therefore when Bankcard arrived, I signed up straight away to keep my customers..

[Nor]

Troyvdh ..
This (recent at least) worry by central banks that inflation was too low and might lead to deflation, which in turn would lead to consumers putting off purchases because they knew they would be cheaper later which would be bad for the economy seems stupid to me, too. Because it would be good environmentally if stuff was made to last longer.
You're welcome, in advance.

[Cobber]

I had a toy shop in the 1970s,.
Before Credit cards came in customers would start putting toys away for Christmas in July/August,and start paying off their purchase.When they came into the shop they would often see something new and add it to their laybuy.
Layby was good as it meant customers would make regular visits to my store.
Come Christmas it was shear hell trying to find the laybys in the store room.Huge swings down to a few matchbox cars.[Do not recall ever losing one.]
At Christmas I would lose customers who would go to The Farmers as they offered credit accounts.
Therefore when Bankcard arrived, I signed up straight away to keep my customers..

I do think there is a place for BNPL, I just don't think there is enough room for 20 players. The market is over saturated. For some reason most of these guys thought they had to buy their customers loyalty with the only point of differentiation being how many weeks it takes to pay your loan off. An extremely weak strategy.

Now they realise they need to scramble back to profitability. Unfortunately for LayBuy, they have loaded themselves with a high corporate cost structure that makes profitability impossible. Hence divesting from the UK.

The next 6 months will be interesting to watch. Is their UK business worth anything (ie can they sell it).... and can they raise any money from the market (ie are their any risk takers left).

[percy]

I do think there is a place for BNPL, I just don't think there is enough room for 20 players. The market is over saturated. For some reason most of these guys thought they had to buy their customers loyalty with the only point of differentiation being how many weeks it takes to pay your loan off. An extremely weak strategy.

Now they realise they need to scramble back to profitability. Unfortunately for LayBuy, they have loaded themselves with a high corporate cost structure that makes profitability impossible. Hence divesting from the UK.

The next 6 months will be interesting to watch. Is their UK business worth anything (ie can they sell it).... and can they raise any money from the market (ie are their any risk takers left).

If I were a toy shop [or any retailer] today I would love BNPL.Increased sales and I would get my money straight away.
As an investor I have avoided the sector.

[Cobber]

Well you’d have to argue someone is privy to confidential information considering the massive volume of stock that got transacted today.

I hope the ASX investigates.

[troyvdh]

Nor...I think you are over thinking this...I believe the average punter does not take into consideration.....
Your comment 'stuff would be made to last longer "
No ****
I mean poo.

[Baa_Baa]

Well you’d have to argue someone is privy to confidential information considering the massive volume of stock that got transacted today.

I hope the ASX investigates.

Yeah around 10x average daily volume and 100% SP increase today, but trading was fairly consistent smallish value throughout the day with no really monstrous trades. Maybe just short covering on triggered stops? Or a bona fide run on a big TA bust up through the MA's. Anyway, still a very long way back to the glory days. Todays' action likely to see some follow through on the buy side tomorrow if there's volume to feed it, traders will be all over this. ASX speeding ticket coming.

[nztx]

Last breath Dead Cat bounce or has this sucker still got some life in it somewhere
probably as another player's breakfast ? ;)

$1.70 odd in Sep 2020 - now limping along at 1/20th of that bouncing on the small rocks along the path -what are the spare desks in the storeroom worth ? ;)

[Cobber]

Last breath Dead Cat bounce or has this sucker still got some life in it somewhere
probably as another player's breakfast ? ;)

$1.70 odd in Sep 2020 - now limping along at 1/20th of that bouncing on the small rocks along the path -what are the spare desks in the storeroom worth ? ;)

Another bit of a bounce today. At least they confirmed there is nothing to see here. Still exiting the UK. How many million $$ was wasted on that adventure??!!

[flyer]

No, its just part of the BNPL sector that have all risen this week, ZIP, OPY, HUM, LBY, SZL. Could of bought ZIP at 45c last week and OPY at 12c.

[nztx]

what happens when the guts drops out of the sector again ? :)

I think I'll wait until some of these players become low priced roadkill again before looking ;)

[Cobber]

what happens when the guts drops out of the sector again ? :)

I think I'll wait until some of these players become low priced roadkill again before looking ;)

You can’t control the sector. But it’s good to read laybuy will be profitable group wide by Q4. I think all BNPL entities need to get thier house in order asap in terms of profitability. The handouts game is over when you have the likes of Apple coming.

[winner69]

Trading halt

Exit UK? / announcing a profit?

[dr_weir]

Trading halt

Exit UK? / announcing a profit?

Delisting from ASX apparently:
>the trading halt is requested pending an announcement by Laybuy in relation to an application tobe removed from the official list of ASX (Announcement);

[nztx]

Where else are they listed apart from on ASX ?

[dr_weir]

Nowhere.

Most likely delisting in order to reduce costs in which case this is a precursor to a shareholder vote announcement. Other possibility is that there's a take private offer, but you wouldn't announce the de-listing first, you'd announce the offer after which a de-listing is a consequence. Even if they'd hit the wall it would be appointment of receivers following which a de-listing would be a potential outcome.

Where this leaves holders though ¯\_(ツ)_/¯.

[Muse]

truly outrageous

[nztx]

Next step .. how about sell the job off to friends & family around a small table at a discount ? ;)

Vendor Finance available on request .. ;)

That's happened before on ASX - the small Sex Toy Retailing outfit that morphed into US Uranium prospector :)

ASX: DLC - Delecta from memory it was :)

[nztx]

https://www.nzherald.co.nz/business/laybuy-shares-go-into-trading-halt/LX7FXW4MUZEI7DECZSCVA2BKHE/

Laybuy shares go into trading halt



The firm, which has its head office on Auckland’s North Shore, listed on the ASX in September 2020 with an initial public offer price of A$1.41.

But its shares have fallen sharply and are worth just A6 cents.


Holy Moly - that's 95.74% of it's IPO offer price evaporated into fresh air in just 2 and 1/3 years ;)


That's certainly some sort of costly - "Buy Now Pay Later"

[JeremyALD]

https://www.nzherald.co.nz/business/laybuy-shares-go-into-trading-halt/LX7FXW4MUZEI7DECZSCVA2BKHE/

Laybuy shares go into trading halt

Holy Moly - that's 95.74% of it's IPO offer price evaporated into fresh air in just 2 and 1/3 years ;)


That's certainly some sort of costly - "Buy Now Pay Later"

Over $130m of cash losses in that time. What does Gary have to say about this? It seems extremely negligent, and has lost retail investors millions by poor management and trying to grow at all costs. You can't just blame the sector for that kind of cash burn. They raised $40m in cash less than 18 months ago.

[nztx]

Over $130m of cash losses in that time. What does Gary have to say about this? It seems extremely negligent, and has lost retail investors millions by poor management and trying to grow at all costs. You can't just blame the sector for that kind of cash burn. They raised $40m in cash less than 18 months ago.


possible fodder for a class action coming up ? ;)

[Cobber]

Over $130m of cash losses in that time. What does Gary have to say about this? It seems extremely negligent, and has lost retail investors millions by poor management and trying to grow at all costs. You can't just blame the sector for that kind of cash burn. They raised $40m in cash less than 18 months ago.

Bit sad really. Prior to LayBuy he was known around the traps as a safe pair of hands and astute businessman. Always telling everyone he majored as an economist, so had a better handle on macro economics which tied in nicely with his retail experiences.

This business has pretty much f**ked that legacy.

[Cobber]

Next step .. how about sell the job off to friends & family around a small table at a discount ? ;)

Vendor Finance available on request .. ;)

That's happened before on ASX - the small Sex Toy Retailing outfit that morphed into US Uranium prospector :)

ASX: DLC - Delecta from memory it was :)

You’re prob closer to the truth than you realise. Valuation has crashed under $10 mill now.

[nztx]

From the same sector - more carnage:


https://www.nzherald.co.nz/business/buy-now-pay-later-provider-zips-shares-fall-amid-fears-it-is-in-cycle-of-death/KUG6CMRMANGLVFVB46AGB3SNBA/

Buy now, pay later provider Zip’s shares fall amid fears it is in ‘cycle of death’



Zip’s shares tumbled to just 70c on the ASX amid fears it could run out of cash before leaving markets outside of the US and Australia – down from highs of A$12.36 in February 2021. Its shares are down a whopping 79 per cent in 12 months.

It had already haemorrhaged money from its operations in the past financial year with a whopping $1 billion loss, as it announced the closure of its United Kingdom operations.

It also revealed that its outfits in Europe and the Middle East were burning through about $50 million a year.


https://www2.asx.com.au/markets/company/zip


https://hotcopper.com.au/asx/zip/

66.0¢ Change -0.045(6.38%)
Mkt cap ! $505.1M


Looks like still a fair bit more smashing & crashing to go, as still checking in at $500m Cap on the Board
unless someone finds a stash of parachutes and full gas bottles for some upwards thrust ;)


Hope no-one here got badly zipped up on this one ..

[Cobber]

From the same sector - more carnage:


https://www.nzherald.co.nz/business/buy-now-pay-later-provider-zips-shares-fall-amid-fears-it-is-in-cycle-of-death/KUG6CMRMANGLVFVB46AGB3SNBA/

Buy now, pay later provider Zip’s shares fall amid fears it is in ‘cycle of death’





https://www2.asx.com.au/markets/company/zip


https://hotcopper.com.au/asx/zip/

66.0¢ Change -0.045(6.38%)
Mkt cap ! $505.1M


Looks like still a fair bit more smashing & crashing to go, as still checking in at $500m Cap on the Board
unless someone finds a stash of parachutes and full gas bottles for some upwards thrust ;)


Hope no-one here got badly zipped up on this one ..

Pretty sure Humm bailed out of NZ market too.

Might be a marathon to see who can outlast the competition.

[nztx]

Pretty sure Humm bailed out of NZ market too.

Might be a marathon to see who can outlast the competition.

could be too ..

Looks like the doors are closed today over the way - Australia Day ?

[troyvdh]

Inflation is rampant....due probably to retail spending.
Like isnt the demise the of this entity a good thing....to lower interest rates !
Now nztx being a wordsmith will post something really flashy.
Like he is a guru.

[SonicGeko]

From the ASX announcement which you can read on here:
https://laybuyinvestors.com/investor-centre/

They are hoping for shareholders to vote in favour of delisting from ASX and to list on Catalist.

https://www.catalist.co.nz/

They are saying one of the reasons is they think share price is not reflecting fair value. Also will save money from delisting etc.
I am pretty new to investing, still learning a lot. Have a very small amount on Laybuy shares, lessons learnt haha. But has anyone had experience with investing on Catalist? interested to hear peoples thoughts? The value of shares is very little so going to hold them to see what I learn from following what happens in the process of delisting and relisting. What are the chances of them acheiving fair value through listing on Catalist?

[nztx]

From the ASX announcement which you can read on here:
https://laybuyinvestors.com/investor-centre/

They are hoping for shareholders to vote in favour of delisting from ASX and to list on Catalist.

https://www.catalist.co.nz/

They are saying one of the reasons is they think share price is not reflecting fair value. Also will save money from delisting etc.
I am pretty new to investing, still learning a lot. Have a very small amount on Laybuy shares, lessons learnt haha. But has anyone had experience with investing on Catalist? interested to hear peoples thoughts? The value of shares is very little so going to hold them to see what I learn from following what happens in the process of delisting and relisting. What are the chances of them acheiving fair value through listing on Catalist?


sounds a bit like the 'Turkey voting for Christmas' stance coming from Laybuy
As for Catalist - they are still going .. still dont see many listings?
Had a brief couple of looks, but nothing much doing there at the time.
An expensive site fees wise & wouldn't go out of my way to go back there.
Unlisted would probably see more eyes, but would they want LayBuy onboard ?

Achieving fair value (whatever that is or will be) looks difficult on Catalist
when many likely wont be going there for a low value holding in what appears
to be morphing into an imploding basketcase ;)

For any looking at hoping for something out of it - look no further than the
Catalist fees schedule:

https://www.catalist.co.nz/Fees


In our public market and in any wholesale markets investors are charged a trading fee if they buy or sell in a secondary market auction. The trading fee is the larger of $30 or 0.25% of the value traded.

In our private markets, if trading fees are payable by investors this will be set out in the relevant private market information page.

Now someone tell me they like the fees structure ? :)

[nztx]

Inflation is rampant....due probably to retail spending.
Like isnt the demise the of this entity a good thing....to lower interest rates !
Now nztx being a wordsmith will post something really flashy.
Like he is a guru.


Sorry - my friend .. didn't see you there before otherwise would have left
it for you to get some practice in :)

[Cobber]

From the ASX announcement which you can read on here:
https://laybuyinvestors.com/investor-centre/

They are hoping for shareholders to vote in favour of delisting from ASX and to list on Catalist.

https://www.catalist.co.nz/

They are saying one of the reasons is they think share price is not reflecting fair value. Also will save money from delisting etc.
I am pretty new to investing, still learning a lot. Have a very small amount on Laybuy shares, lessons learnt haha. But has anyone had experience with investing on Catalist? interested to hear peoples thoughts? The value of shares is very little so going to hold them to see what I learn from following what happens in the process of delisting and relisting. What are the chances of them acheiving fair value through listing on Catalist?

I think the ASX absolutely shows true value. They lost $50 million. What did they expect??

Announcing you think you might be profitable is not the same as actually showing a profit.

The current value is not just about the business, it also embodies macroeconomics. People will spend less on retail which affects Laybuys ability to increase or maintain revenue.

Saving $500,000 in fees is good. But existing shareholders are prob going to get rogered in this move.

They should have been boot strapping from day 1.

[nztx]

https://www.stuff.co.nz/business/131258269/laybuy-how-one-companys-share-price-fell-from-2-to-3c

Laybuy: How one company's share price fell from $2 to 3c



When Laybuy listed on the Australian stock exchange in September 2020, investors were fizzing. Just under 60 million shares were sold for A$1.41 each – but before the day was over they had jumped to A$2.30.

The New Zealand buy now pay later (BNPL) startup had boosted its value by just under NZ$130 million in 24 hours. BNPL – a service that allows shoppers to split purchases into a number of smaller payments, interest-free – was still a relatively new development.

But now, less than three years later, investors will vote this week on plans to delist the company.

It shares, which had dropped to about A6c before the plan was announced, are trading for less than A3c.

[nztx]

https://www.nzherald.co.nz/business/buy-now-pay-later-operator-laybuy-lays-off-more-workers/N7O2K3ZN5BFFBOOQZQLJ3OCP2A/

Buy now pay later operator Laybuy lays off more workers


Won't be many left soon .. aside for the top brass :)

How about a new catalyst coming for shutting things down ? ;)


Sorry folks - it's a NZH Premium special :)

[Jaa]

Very quiet trading on Catalist, 4 trades at 0.033c for a total of ~$17.5k in six months.

Trading fees seem ok to me?

"The trading fee is the larger of $30 or 0.25% of the value traded."