Shares in Queensland-based BPS Technologies, the company behind global goods exchange network Bartercard, fell 4 per cent to 96¢ after listing on Tuesday.
Chief operating officer Trevor Dietz, a 14-year veteran of the company and one of its three owners before the float, has big plans for the $28 million raised in the offer, including accelerated offshore expansion, particularly in the US.
He claimed they had a "disruptive" business that had been given a new lease of life with the advent of smartphones.
"Listing is really to be able to take the opportunity for growth and acquisition – in the US, there is more than 400 trade exchanges," he said.
BPS also thinks it has a good chance of selling more of its TESS software to back more barter exchanges.
The company, which listed at $1 per share with all $28 million raised by the offer at the close of August 28, has three main businesses: Bartercard, its small business loyalty scheme Bucqui, and selling its trading platform TESS.
Bartercard is a 23-year-old trading exchange that allows small businesses to offload excess stock to other companies on the exchange instead of discounting in return for a "trade dollar". Mr Dietz described this as an alternative digital currency backed by goods and services. Businesses can use this to buy stock from other members of the exchange.
Bucqui – which BPS will take over with 2 million shares from the float after buying 66 per cent of it in January – is a smartphone-based loyalty scheme for small business and not for profits. These have not worked to date as customers don't want loads of extra cards in their wallets. But Mr Dietz said smartphones make loyalty networks for small business and charities viable.
"Cards are expensive to produce, but on mobiles it is simple for customers to use, and it uses advanced technology and gives merchants the capacity to communicate and to attract customers with offers to come again," he said.
"Bucqui has all the excitement of a new disruptive technology. There are plenty of smart little apps, but most don't have a strong consumer base on which to launch them."
The company forecasts 2015 net profit after tax will be $6.5 million, up from $5.9 million.
The Bartercard business sells regional franchises, collecting a licence fee from operators. Mr Dietz said they had sold two regions in the US to date and planned to have 20 regions in the next five years.
One investor who had considered buying shares said they still did not understand why business would use it and decided against investing.
BPS gets its revenue from monthly payments and transaction fees paid by merchants on Bartercard, Bucqui and TESS.
For Bartercard, trade networks pay a monthly fee starting at $150, ranging up to $500 and an 0.5 per cent per transaction fee. On Bucqui, businesses pay a $39 monthly fee, and between 1.5 per cent and 6.5 per cent per transaction.
But if a merchant or charity gets someone to download the app, and that person buys at other businesses in the network, the original business can earn a 1 per cent trailing commission on each purchase at other businesses.
