(Photo by Dan Kitwood / Getty Images)

Raiz Invest, the company which took over Acorns Australia, listed on the ASX this morning.

The company raised $15 million prior to listing at a price of $1.80 per share, but the stock has fallen to $1.50 in early trade.

CEO George Lucas told Business Insider the company is targeting millennials in the South-East Asian market.

Fintech company Raiz Invest listed on the ASX at 11am AEST, and the stock price dipped more than 16% at the open.

Raiz Invest rebranded in April from its previous name of Acorns Australia. Its app accumulates people’s spare change by rounding up the difference on purchases, and provides a mechanism for users to invest the difference.

Today’s listing follows the release of a prospectus by the company in May, where it announced plans for a $15 million capital raising and lodged an application with the ASX.

Raiz said the initial offer was oversubscribed and it subsequently raised $15.12 million at a price of $1.80 per share, which gives the company an indicative valuation of around $119 million.

When the shares went live the initial price shown on Commsec was $1.79. A short time ago, the price on Commsec had fallen to $1.50.

As at 20 June 2018, Raiz has 160,000 active monthly customers and $200 million funds under management.

The company’s May prospectus showed that $5 million of those funds would go towards an international expansion strategy, and Raiz has now incorporated companies in Indonesia and Malaysia.

It’s also in the processes of applying for licences in those jurisdictions to meet the relevant regulatory framework.

CEO George Lucas said the company currently had no plans to push into other markets, such as North America.

“Right now it’s just South-East Asia, and we’re aiming at the same demographics as the Australian market,” Lucas told Business Insider.

“In that under-35 age group, South-East Asia has the biggest population of millenials in the world, so it’s potentially a big market for us.”

Raiz is also targeting the superannuation market and Lucas told BI the move is part of a broader strategy to expand the company’s offering.

“We’re positioned as a broader financial services company. It’s not just 160,000 users — we’ve got a database of 490,000 and we want to offer our customers a full range of services.”

He said the super offering has “exactly the same investment products that are on the Raiz app”.

“As our customer base gets larger, we want to grow with them as they grow. And as long as we listen to what they tell us, we’ll be able to provide the right products to assess their needs.”

In an ASX announcement today, Raiz said its super offering puts it in the cheapest quartile for super funds, based on a Superratings review of over 400 superannuation fund projects.

The company said it has achieved monthly user growth of 3% since March 31, with 11% growth in customer signups and an 18% rise in funds under management.

Following the succcessful completion of the $15 million capital raise, Lucas is now eligible for a $1 million cash payment. A further $1 million will be paid out to other company executives.

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