Mike Hill the Chairman of MPA and who is part of the Bombora Group continues to buy shares on market.  Good to see his personal support of the company along with the founders and other directors.

DIRECTOR TRANSACTIONS

8 May 21: Hill +159,250 @ $0.185-$0.195 [50,750 D; 315,639 ID; 100,000 ID]

31 Mar 21: Hammer +50,000 @ $0.20 [5.60m; 1.82m]

31 Mar 21 Pacas +100,000 @ $0.205 [6.07m D; 741,328 ID]

31 Mar 21: May +110,000 @ $0.22 [110,000 D; 159,338 ID]

31 Mar 21: Hammer +65,217 @ $0.22 [5.55m; 1.82m]

31 Mar 21: Hill +100,000 for $20,605 [207,139; 100,000]

MPA Mad Paws is a new IPO which listed on Friday 26th March.  The IPO raised $12m at $0.20 and was 4x over subscribed.  It was founded in 2014 by the current management of Justus Hammer, Alexis Soulopoulos and Jan Pacas. 

Mad Paws is a platform to match pet sitters with pet owners. It has almost 80,000 customers and 20,000 sitters.

MPA generates revenue from:-

1. Pet Care - Sitting, Walking, Day Care, Grooming (Lanuched 2015)

2. Pet Food & Treats (Launched Aug 20)

3. Pet Insurance (Launching Q2 21)

4. Pet Health (coming soon)

The addressable Market is 8.9m dogs and acts in Australia.

The total no. of shares at IPO was 214m.  At the closing price of $0.22, the market cap is $47m. 

Revenue $m:-

FY20 2.00

FY19 1.58

FY18 0.89

1H21 Revenue came in at only $0.98m.  The half was affected by Covid-19.

Bombora is a substantial holder with 13.98%.  After the IPO they have bought on market.  Bombora clients were offered pre-IPO convertible notes which converted at $0.16 and IPO shares.

Although, it is the no. 1 player in the space, it seems expensive at current revenue levels >20x FY20 Revenue and no revenue growth for 1H21. 

There is a lot of faith built into the current management's ability to grow revenue rapidly from here.

[Disclosure: I obtained an allocation to the pre-IPO convertible notes through Bombora]