DomaCom Moves to Conducting IPO After Raising $8m

KEY HIGHLIGHTS:

• Total of $8m raised from sophisticated and professional investors
• Pre-IPO share price was $0.50
• DomaCom now has over 160 shareholders
• IPO planned for Q3 2016

DomaCom Limited, owner of Australia’s first regulated fractional property investment fund, has raised $8 million, laying the foundations for a planned public listing in the third quarter of this year.

Sophisticated and professional investors have supported the $0.50 a share capital raising, with DomaCom’s share register now boasting more than 190 shareholders.

DomaCom CEO and founder Arthur Naoumidis says: “This capital raising is an exciting step towards a planned public listing in the third quarter of the year.

It’s been a long journey since DomaCom first introduced the concept of fractional property investing to the market in 2012 but we are now starting to gather some real traction in the market.

We have acquired already our first 11 properties with another 54 property acquisitions in progress. This should bring our total number of properties on the platform to 65, with a market valuation of about $40 million.”

DomaCom has also demonstrated the versatility of its revolutionary investment model when it recently launched a $250 million crowd-funding campaign to buy the iconic pastoral empire S Kidman & Co, Australia’s largest landholding. The pitch targets investors wanting to keep Kidman Station Australian-owned. Registrations of interest exceed nearly 4,000 investors who have pledged about $58 million.

Naoumidis says: “Clearly there is a strong mood among investors that Kidman Station should remain in Australian hands, and our investment model can allow this to happen. Crowd-funding hasn’t traditionally been associated with pastoral properties, but that’s no reason why it can’t happen.”

The $8 million pre-IPO capital raising was managed by Sydney based Corporate Advisory Firm Axstra Capital along with joint lead manager Pulse Markets. Daniel Coombes, Axstra managing corporate advisor, says: “We are very pleased with the result and to be able to close the pre-IPO ahead of schedule”.

“The strong support received from investors is testament to the potential of DomaCom and the truly innovative pipeline of financial products it has and is developing. With this funding in place, the company can now focus its attention on the next step which is a public listing.”

DomaCom’s key objective is to allow investors to invest into direct real estate in fractions, without the need to buy the entire property. This allows many small investors to pool together and buy large properties. DomaCom’s initial focus is on the self-managed super fund (SMSF) market that boasts more than half a million funds and about $600 billion in funds under management.

To download the full announcement, please click on the link below.