A whopping 150% gain in a day. That’s how much a company called QuickFee Limited [ASX:QFE] rose last Thursday.
Did you see it?
It certainly has me thinking…
Could QuickFee be the next Afterpay Touch Group Limited [ASX:APT]?
Let’s find out the background story here, so you know what’s going on…
Who is QuickFee?
QuickFee Limited is a Sydney-based fintech company founded in March 2009. That means this business has quite a history already.
QuickFee went public on 11 July last week, so the company is now listed and tradeable on the ASX.
At the end of last week’s trading, QuickFee shares settled at $0.48 each.
As part of its IPO, the company raised $13.5 million by issuing 67.5 million shares at $0.20 each. That gives the company a market cap of roughly $35 million.
But what does it do? In short, QuickFee manages invoice payments on behalf of law firms and accounting businesses.
What’s so compelling about this? Well, it could signal the next fintech growth story.
The current darling of the Australian fintech space is Afterpay. This company has risen 105% since January 2019, or a crazy 852% since June 2017.
Let’s take a closer look at this new ASX stock…
QuickFee has an online payment portal, which allows ‘clients of firms’ to pay how and when they want.
As a result, QuickFee can reduce the time it takes for businesses to get paid.
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According to QuickFee, law and accounting firms wait 60 to 90 days on average to get paid.
QuickFee charges clients a ‘monthly hosting fee’ in return for a speedier and more convenient payment process.
That’s not all…
The company can also generate revenue from processing fees, as well as interest on loans it makes.
Part of the QuickFee strategy is to target legal firms in Australia that generate revenue of more than $3 million a year.
QuickFee is also making a move on the American market.
What does the future hold for QuickFee?
Now, you may be wondering why QuickFee went public.
Well, as you know, a company goes public to raise capital in order to expand.
QuickFee is no exception.
The company says it will use the funds to improve its online platform and integrate with accounting software vendors. It will also provide additional funds for its lending arm.
QuickFee has a big opportunity to expand, and that’s why I consider this business worth watching.
I suggest letting the stock settle on the market for a while before making any investment decision.
This article is not a recommendation to buy or sell QuickFee. It’s an update only.
Until next time,