The compliance fintech company, Kyckr Limited was incorporated in November 2015 with the specific purpose of acquiring GBR and then subsequently invested for global expansion plans. GBR is an Irish-based company, which has developed the commercially proven suite of ‘Know your customer’ products which provides an extensive real-time network to official corporate data sources throughout the world. It has a credible client base, which includes the likes of blue chips such as PayPal and Swift. It has built up a physical network, which provides real time access to more than 70 million users from 150 registers in 88 countries. Kyckr is seeking to raise $ 8 million in an IPO (with proposed code KYK and listing date as 20 July 2016) and the indicator market capitalisation of the float is approximately $ 28 million.
 
About the company: Kyckr provides ‘Know your customer’ services to its clients. This emanates from latest technological developments. With technology upgrade and internet providing many opportunities, money laundering and financial support for illegal activities have also got a boost. It is easy to transfer money across the world using online software and digital communication platforms, at the same time facilitating criminal activities. Thus, compliance regulation requires businesses to develop ‘Know your customer’ norms and any breach is considered to be punishable. The IPO investors would thus get an opportunity to obtain exposure to the demand for compliance services through the use of the company's intellectual property assets because it provides these services to corporate clients in exchange for subscription fees. It has established long-term relationships with various business registers throughout the world and the primary driver of the IPO is expected to be its ability to acquire new customers.
 
Few risks: However, the lack of protection for patents, industry regulations and requirements for funding have to be seen as business and investment risks. The company does not own any patents or trademarks and its major intellectual property rights (copyrights) cannot be registered in Australia. The global network and range of product offerings should be seen as competitive advantages, but the risks of transparency and the lack of historical performance may create some uncertainties in the mind of investors.
 
Offer details: According to the offer statistics in the prospectus, the offer price per share is $ 0.20 with a minimum subscription of $ 5 million and a maximum subscription of $ 6 million. The total number of shares being issued to GBR shareholders is 46,297,500 and the total number of shares on issue after completion of the offer is 98,981,373, at minimum subscription and 103,981,373 at maximum subscription. The GBR founders Ben Cronin and Robert Leslie are well respected within the global business registry industry with a proven track record of high quality product delivery and the wider team is composed of skilled and experienced professionals with in-depth business knowledge.
 

Offer details (Source: Company Prospectus)
 
The company seem to have strong foundations and fundamentals but is in the early development stages and requires further investment to formalise and scale-up the business. The USPs are seen as the global network with access to real time information, modular information APIs which can act as building blocks and the global relationship with business registers.

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