Latitude Financial IPO falls through

Latitude Financial IPO falls through

A rebranded version of GE Money was set to become Australia's largest IPO of 2019 this week, but the company's owners have cancelled the $1.04 billion float.

Led by ex-Australia Post chief Ahmed Fahour, this was Latitude Financial Group's second attempt to list on the Australian Stock Exchange (ASX) in just over 12 months.

Two sources close to the deal told Reuters Latitude's founders KKR & Co, Deutsche Bank and Varde Partners opted out of the IPO given a large part of the demand came from hedge funds rather than long-term investors.

The listing was originally going to be set at between $2-2.25 per share, but weak demand reportedly led to a discount of up to 20.9 per cent which still wasn't enough to get the deal over the line.

In a statement released today, Latitude confirmed the withdrawal of the IPO after bookbuilding concluded last night.

"Despite extensive engagement with prospective investors the Board and shareholders have determined not to proceed with the offer," chairman Mike Tilley said.

"The Board and shareholders were conscious of the importance of ensuring a strong after market for the company. Latitude is a strong business and its management team will continue to execute on the growth strategy embodied by Latitude 2.0.

"While it is disappointing that we are not in a position to progress a public listing at this stage, we will continue to execute on the growth strategy with the support of our shareholder group," added managing director and CEO Ahmed Fahour.

The float was to be underwritten by Goldman Sachs, Macquarie and UBS.

2019 has been a big year for IPOs and with mixed results. On the more positive end of the spectrum you have Beyond Meat's which is now worth almost double its listing price, but Uber has been less promising with its value down by almost a quarter while investors pulled out of the WeWork IPO which ultimately failed. 

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

The devastated boss of collapsed Gold Coast homebuilder Pivotal Hom...

SelfWealth shareholders quash board overhaul attempt

SelfWealth shareholders quash board overhaul attempt

Shareholders in fast-growing online brokerage startup SelfWealth (A...

EVENT to hit divestment target once $75m Rydges North Sydney sale completes

EVENT to hit divestment target once $75m Rydges North Sydney sale completes

Entertainment and leisure services provider EVENT Hospitality &...

Takeover activity lifts a gear for Infomedia with a second $657m bid from Battery Ventures

Takeover activity lifts a gear for Infomedia with a second $657m bid from Battery Ventures

Auto industry software services group Infomedia (ASX: IFM) is mulli...