After an oversubscribed IPO round that closed in just a matter of hours, Douugh listed on the ASX on Tuesday 6 October 2020 and has rewarded early investors with a return of up to 1633% if they managed to sell at its high. Hitting an intra-day high of $0.49 per share on Friday 16 October, Douugh’s share price increased by 16x in just a couple weeks of trading. Over 2500 people had registered their interest on Equitise to participate in the IPO, purchasing shares at just $0.03. Before its September IPO, Douugh had also run a wholesale raise on Equitise in 2019 rewarding those earlier backers as well. The stock is currently trading at 30 cents a share, reflecting a 10x return for those still holding.
Douugh is a purpose-led fintech company, taking a proprietary artificial intelligence (AI) first approach to disrupting the business model of banking, helping customers live financially healthier. It operates a subscription based financial wellness platform, which helps customers spend wisely, save more and build wealth via a smart bank account and Mastercard debit card.
Douugh is not a licenced bank, therefore it is not forced into operating a traditional balance sheet model which is typically reliant on competing on price through the offering of traditional deposit and lending products such as credit cards, personal loans and mortgages. Instead, the company operates as a software and services business, charging end consumers fixed and variable fees.
Just a handful of wholesale investors were able to get in early for Douugh’s private round in 2019, where the company raised $130,000. This year, our limited IPO allocation of $750K filled in just a few hours with 75 lucky investors getting in early, reflecting the high demand to back this Aussie fintech trying to change the way we bank.
At Equitise, we’ve been fans of Douugh’s innovation for a number of years now. Led by Andy Taylor (Co-Founder of SocietyOne), Douugh is an exciting fintech prospect with a bright future ahead. With the funds raised from its IPO, Douugh is continuing to develop its market-leading technology with an intended US launch in the near future. If the first few days of trading are anything to go by, the company is certainly one to watch.