Is the Bitcoin Group Limited IPO a guaranteed multi-bagger?

Investor interest in alternative financial businesses has skyrocketed in the past few years, as developments such as Peer-to-Peer lending and Bitcoins have grabbed headlines across the globe.

Directmoney Ltd (ASX: DM1) listed on the ASX back in July, Trade Me Group Ltd (ASX: TME) bought a big chunk in NZ peer-to-peer lender Harmoney, and Westpac Banking Corp (ASX: WBC) has exposure to the sector through its stake in SocietyOne.

Now, Australia (and the world) is getting its first listed Bitcoin trader, in the form of Bitcoin Group Limited (ASX: BCG), which recently released its prospectus to interested investors. I’ll dig into the meat of the offering further down the page, but here’s a broad outline:

  • 100,000,000 shares to be issued at $0.20 each
  • Afterwards, there will be a total of 164,870,930 shares on issue including existing shares (market cap of ~$32m)
  • Management to own 9.2% of the company, with the public owning 60.7% and remainder owned by significant investors
  • Minimum investment $2,000
  • Offer closes 30 October
  • Purpose of the offer is to fund growth and increase working capital, as well as repay small director loans

So What?

To their credit, Bitcoin Group has presented a comparatively straightforward and easy to understand prospectus, which is necessary given the

Read more ... source: Bitcoin Warrior