Invest In TechFinancials? First Binary Options Platform Provider Goes Public
Now you can invest in Tech Financials as well as invest with them. The binary options platform provider completed the first IPO in the industry paving the way for further expansion. TechFinancials, white label provider and operator of brands like 24Option and OptionFair and BossCapital is not the first binary options company interested in going public but it is the first to succeed. Independent operators like Anyoption and SpotOption are two notable brands and providers rumored to IPO that have yet to produce results. The listing of Tech Financials on the London Alternative Investment Market (AIM) is the first for the industry but follows in the foot steps of successful Forex brands who have managed to take the step from public to private company.
As a white label provider the company has revenue streams through its own brands as well as those operating under the white label network. The network includes more than 40 brands including the CySEC licensed 24Option, OptionFair and others. It is estimated that the gross amount of money on deposit in the network is over $25 million, giving the company annual revenue in the range of $10-$20 million. The fact that this company could even consider an IPO sends a positive message to the financial world, completing it even more so. On one hand it strengthens the image of binary options in general, and on the other provides legitimacy for Tech Financials. The caveat though, as pointed out by international business attorney Jonathan Morris, is that the IPO is only the first step.
TechFinancials Looking Forward
Looking forward, to really call this a successful IPO, the company will need to begin delivering results within the first 3-6 months. If not the investment market could lose faith in the company and the industry, hurting chance for future IPO’s. Two areas that are of utmost importance are compliance with regulator requirements and liquidity. The pre-IPO roadshow was a bust and only raised about half the expected capital. If there is not sufficient interest once the stock is actually floated on the market prices could fall significantly. One piece of good news however is that there is significant amounts of insider ownership, roughly 70% of the float, and no plans to sell. The biggest risk to liquidity however is news. If the company should stumble on bad news, or fail to produce expected results, investors could flee the market.
Another good sign for this IPO is that the money is intended for re-investment in the company, and not as a cash-out strategy for its owners. Company co-CEO’s explained in an interview with ForexMagnates that they plan to use the capital for expansion of the current platform and R&D. Plans include expansion into the US market. The company is currently working on a US CFTC compliant system that they plan to have up and running in 2017. Other plans include additions of simple Forex and CFD products to its existing platform. This is so they can offer a complete array of trading tools for its white label and trading clients.