Alan: Good day. I’m Alan Kohler. I’m a shareholder of DomaCom and have been since the start. I’m delighted to be on board the good ship DomaCom and to be a part of its transition to being an ASX listed company with a public float, or an initial public offering, or IPO as they’re called. Now, Arthur, I thought from the start that it was a fractional property, investment vehicle, but really what you seem to have done since you started is to build the gold standard of crowdfunding vehicles, because it’s much more than that. It’s a very complicated and interesting structure. So tell us about what you’ve done.
Arthur: Yeah, we started off with one mission, which is to take a lumpy asset property and break it up into bite-sized chunks. In doing so, though, we’ve had to go in and develop technologies and platforms such as crowdfunding, which enables the investors to pull together to buy any property they like or to invest in a portion of any property they like. So DomaCom’s really about, you know, breaking up property in small bits for all investors.
Alan: And you really demonstrated that with the proposal to buy the Kidman property.
Arthur: Yeah. Well, that’s a very ambitious target, and we employ several…five-and-a-half thousand investors who have pledged $80 million towards that target. So it shows you that it can be done. In fact, we believe we’re the only crowdfunding platform in the world that can do a retail campaign of the size of Kidman.
Alan: But I wanna hear just briefly what’s unique about DomaCom?
Arthur: The key difference in DomaCom, compared to any other crowdfunding platform in the world that we’re aware of, is our legal structure. We’ve spent an extra three, four years in getting to this point, and that legal structure enables us to effectively operate at a retail level, so normal investors. You don’t have to be sophisticated to participate. So that’s the first difference.
The second is we’ve got what’s called market-maker permissions. So it enables people to transact their holdings. The combination of advanced crowdfunding, advanced legal structure really sets DomaCom apart from anyone else in the world.
Alan: Speaking of the ASX, tell us why you’re going onto the ASX through an IPO at this time.
Arthur: We’re targeting two key markets: the financial planning market and also the direct investor market, as shown by the Kidman transaction. And both of them, we’re finding there’s one key issue that they all have. They all love the concept. They love the idea. It’s really about who is DomaCom and, you know, how secure is the company. So really, the best way we believe to solve this issue for prospective investors is to become an ASX listed company because everyone knows being on the ASX means that we can raise capital. In fact, we’ll do so as part of this initial public offering.
Alan: So give us a bit of a pitch to potential investors. How many dealer groups, how many potential advisors have you got involved? And what’s the kind of support that you’ve got?
Arthur: Yes. Well, basically, as a business, you need to demonstrate that you have a market for your product, and we believe we already achieved that. Thirty-seven financial planning dealer groups, which represent about 5% of the market, have already approved our product. Now, that’s a huge milestone and, as those in the financial planning world know, it’s not an easy task. So we have 37 dealer groups already done. So that’s what we call a lead indicator. Now, out of those 37 dealer groups, over 1000 advisors, half of them have already undertaken an online course and test, of course.
That’s also what we call a lead indicator. So we’ve now gotta convert this traction into real funds under the management, and from our…you know, the feedback is that the last hurdle is really to convince these advisors, but also investors, that we’re a safe and solid company. Sure, we have a very solid custodian responsible entity in perpetual, but ourselves, DomaCom, needs to really ramp up on the corporate governance side and be a stronger financial company. So hence, we’re going to list on the ASX.
Alan: What’s the structure of the IPO gonna be?
Arthur: We’re targeting a $10 million raise with a minimum of $5 million, which is fully underwritten, so, you know, we’re ready to go, and we will take…
Alan: You mean the $5 million’s underwritten or the $10 million?
Arthur: Yes. Now the $5 million’s underwritten, so basically, we have enough that were subject to the ASX and ASIC approvals where we’re ready to go.
Alan: What’s the timing gonna be?
Arthur: The offer’s open now, and the offer will go through till about the 5th of August with an expected IPO listing date of the 18th of August.
Alan: How do investors find out more?
Arthur: Well, they come along to our website to the investor relations, where they can download the prospectus with the application form or apply online via our website.
Alan: So, there you go. Check it out on domacom.com.au.