Trading frenzy on MyDeal sends share price soaring on opening day

Having raised $40 million from their IPO which would give Mydeal.com.au (ASX: MYD) an implied market capitalisation of $258.8m, investors that missed out on the IPO offer have hit the ASX boards in droves to open MYD shares at $1.80, a rise of 80% on their $1 IPO Offer Price.

The demand for MYD shares comes following a monumental 6 months for the eCommerce sector which has thrived through the pandemic as online shopping surged while populations were in lockdown. 

As an online department store, MyDeal’s marketplace is largely focused on household goods such as furniture and homewares but is heading down the same business model as Kogan.com with IPO funds raised to be applied to growing MyDeal’s private label business. 

“This is a very exciting day for MyDeal, and I am delighted with the strong support that we received from both institutional and retail investors,” said Mydeal Founder and CEO, Sean Senvirtne. 

“Today is an important milestone for MyDeal, however, this is still the beginning of our journey. I would like to thank our long-term shareholders for their ongoing support, and welcome new shareholders to be part of the exciting journey ahead of us.”

As of 30 September 2020, MyDeal had 669,897 total active customers which represented a 268% increase in customers over the past 12 months. 

From those active customers, MyDeal delivered $56.7m in sales for the September quarter. 

Founded by Senvirtne in 2012, an IPO for MyDeal has been talked about for several years. As the Founder notes, no IPO participants received their full allocation with institutional investors “massively scaled back” to protect early investors. 

Senvirtne remains the Company’s largest shareholder with a 47.32% stake.