SelfWealth Shares in Trading Halt: New Growth and Cap Raise

By ,

Australia’s first peer-to-peer online brokerage platform, SelfWealth Ltd [ASX:SWF] has been making significant waves in the fintech world over the past few months. Now in a trading halt, SelfWealth’s share price last closed at 15 cents.

The $26 million company is looking to raise $3 million through a placement priced at 14 cents a share.

swf asx

Source: Tradingview

SWF’s share price has performed strongly over the past 12 months, climbing a solid 105.48%. Though the share price has sputtered a bit since October 2019, we may see the share price lift on the back of a cap raise and today’s announcement.

Global fears not worrying SelfWealth traders

One day after entering a trading halt, SWF today announced some serious growth figures over the month of February.

The online trading platform recorded 2,581 new active traders in February, representing an 11% growth in overall active traders and a 51.3% growth in the monthly acquisition rate.

These new members join a further 26,000-plus community of active traders. Collectively, the cash balances of SWF’s traders grew to $217.22 million at the end of February, up 33.3% month-over-month.

SWF announced that the number of trades on their platform has increased 28.7% from January, totalling 42,396. Which represents approximately 1.63 trades per user.

Could Australia’s fintechs spell danger for banking profits? Check out three other Aussie fintechs eating into traditional banks in this free report.

While these figures certainly represent some positive news for SWF — and could be a telling sign of things to come for the broker market — they alone do not represent SelfWealth’s potential.

More people getting pushed into equities could benefit SelfWealth

With interest rates in the country inching ever lower, pushing more people into the Australian equities market, SWF’s pool of potential customers could grow accordingly.

Currently, there are approximately 760,000 online investors in the country with around 30,000 switching brokers annually. Though the market is still dominated by CommSec, accounting for about 50% of the market, SWF has managed to double its market share to an estimated 4%.

SelfWealth projects it will acquire 15,000-plus new active traders in year 2020. A figure representing about 25% of new and switching investors.

These strong growth trends have also cut the company’s cash burn by more than half. From FY18 June to FY19 June, SWF has cut cash burn from ~$1.75 million per quarter to ~$0.75 million per quarter.

During the same period, their number of active traders trebled, up from just under 5,000 to ~15,000.

We’ve seen this before — a small fintech carving out a niche by doing one thing well. The three fintech picks in this free report each have their own strengths — one in particular is up 25% and works in similar field to SelfWealth.


Lachlann Tierney,

For Money Morning

About Lachlann Tierney

Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest…

SelfWealth [ASX:SWF] Shares Down As Funds Under Administration Reach $9.3 Billion

Australian investing platform SelfWealth [ASX:SWF] saw revenues rise 6% quarter-on-quarter as funds under management grew to $9.3 billion.

SelfWealth Record Growth Fails to Stop Share Price Pressure (ASX:SWF)

Trading platform SelfWealth [ASX:SWF] is under the pump today. The share price is currently down 4.11% at time of writing, even though management just announced a record-breaking result.

SelfWealth Share Price: $12 Million Capital Raise Announced (ASX:SWF)

The capital raise follows a rocky period for the SWF share price. The stock is down 25% over the last 12 months, underperforming the ASX 200 benchmark by 55%…

SelfWealth Debuts in the US — Share Price Rise 2.8% (ASX:SWF)

The share price of trading app platform SelfWealth Ltd [ASX:SWF] is trading 2.8% higher at the time of writing, after announcing its long-awaited US debut. It means the company will now be able to reach a much broader customer base…

SelfWealth Share Price up on US Trading Functionality (ASX:SWF)

At time of writing the share price of SelfWealth Ltd [ASX:SWF] is up 6.2%, trading at 60 cents. After a sharp uptick as retail investors flooded in, the SWF share price slipped following an early September high

SelfWealth Share Price Rise Cools after Investor Presentation

A quick look at the SelfWealth Ltd [ASX:SWF] share price. After an immense run fuelled by a flood of new retail investors in lockdown, the SWF share price is starting to cool…