The BNPL company with a UK focus was in a trading halt yesterday raising capital, new shares were being offered at $2.03, a 15.8% discount to last with funds mostly being used to make a push at the US market. We own Openpay in the Emerging Companies portfolio given its exposure to the growing BNPL theme and discount vs peers. At 7.1x forecast FY21 sales, it’s at around a 50% discount to Z1P, and closer to an 80% discount to AfterPay (APT)
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BNPL Relative Forward EV/Sales. Source: Shaw & Partners
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BNPL Relative Forward EV/Sales. Source: Shaw & Partners
It also runs a differentiated model – OPY offers flexible payment options on healthcare, subscriptions & membership fees among other purchases its competitors haven’t gone after. We will likely take up the SPP if OPY holds the raise price.
MM is bullish OPY
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