Comprehensive M&A data with integrated detailed company information

Latitude planning IPO at AUD 4bn valuation: the Australian
Posted on Friday, 20 September 2019 11:41
Latitude Financial is planning a stock market flotation that could value the company at between AUD 2.59 billion and AUD 4.00 billion (USD 1.76 billion and USD 2.72 billion), the Australian reported, citing research analysts from Macquarie Capital.

These insiders observed that Goldman Sachs, Macquarie and UBS have all been hired to work on the initial public offering (IPO) expected in October or November.

Reuters also cited two sources familiar with the matter as saying the listing on a local bourse could value the non-banking lender at AUD 3.70 billion.

Zephyr, the M&A database published by Bureau van Dijk, shows this would be the largest stock market flotation of an Australian company announced in 2019 to date.

Latitude, which is partly owned by Deutsche Bank, KKR & Co and Varde Partners, previously attempted a public sale of shares last year but delayed plans due to market conditions at the time.

The group is expected to produce annual net profit of between AUD 236.00 million and AUD 288.00 million and is likely to be valued at 11.0 to 14.0 times this amount, the Macquarie analysts told the Australian.

According to a report by the Age, Latitude generates around half its operating income from installment loans, with the remainder from personal and car loans and credit cards.

The business has 2.60 million customers, 1,600 full-time staff and a distribution network across over 1,950 merchant partners.

It was taken over by Varde, KKR and Deutsche in 2015 when it was operated as GE Money before transitioning into an independent digital payments and finance company.

Zephyr shows there have been 49 IPOs of Australian businesses announced in 2019 to date.

The largest so far involves VGI Partners Asian Investments raising AUD 800.00 million on the Australian Stock Exchange.

Other companies have included Perpetual Credit Income Trust, MCP Income Opportunities Trust and Regal Investment Fund.

© Zephus Ltd