US-based innovative online brokerage firm Third Party Technologies has its sights set on expanding into Australia with a $7 million IPO and upcoming ASX listing.
Founded in 2015 by OneTrade Stockbroking and Roboinvest founder Michael Giles, Third Party helps companies provide access to U.S. equity investments for retail investors by lowering the barriers to entry in a highly regulated industry.
It uses an application programming interface (API) platform – powered by licensed U.S. broker-dealer TPT – to reduce time, cost and complexity of launching products for trading and investing in equity securities and equity options.
Third Party also only operates on a business-to-business basis, removing the need for costly marketing and advertising to retail customers.
In just over a year since commercialising the platform, the company has grown to over 20 US-based customers including high growth potential start-up fintech companies, digital RIAs (Registered Investment Advisors), broker-dealers, banks and trust companies.
Now, Third Party is taking its platform, adapting it and offering it to potential Australian-based customers.
It’s currently seeking to raise up to $7 million through the issue of 35 million CDIs at 20c offer price with bulk of the raising to fund technology and development, sales and marketing, compliance and brokerage operations and working capital.
What’s of interest is the company is backed by some heavy-hitters including former Bank of Queensland CEO David Liddy, the Liberman family’s investment group LJCB and early investor in SEEK Neill Miller to name a few.
“When I met Michael, and saw what he had built with Third Party, I thought this is the future of financial services,” Mr Liddy said of Third Party’s unique product offering.
Cloud-based Infrastructure like what Third Party has to offer, built today from the ground up, will replace incumbent platforms that were built decades ago and still operated on mainframe computer systems.
“Those legacy platforms won’t be able to compete with the new platforms being offered by companies like Third Party,” he added.
Joining Mr Giles on the board is Simple founder and active angel investor Shamir Karkal and co-founder of mining consulting firm Salva Resources Lachlan Broadfoot as non-executive directors.
The IPO is expected to close on 22 December with ASX trading expected to begin, under the ticker 3PT, in early January 2018.