ICP Latitude

The initial public offering of Latitude Financial Group has been repriced to $ 1.78 per share, providing an 11-times profit and a 5.8% dividend yield. Ingerson Capital Partners analysts reveal the deal was repriced on Monday morning ahead of a bookbuild scheduled for Tuesday and Wednesday to generate the funds.


This year's biggest IPO in Australia is Latitude. It had hoped to raise $ 1.24 billion, but the offer size is likely to be $ 1 billion at the current pricing. The decision to reprice came after Latitude's owners settled on a price of $ 2 per share on Friday. , up from a previous range of $ 2 to $ 2.25.


Latitude's bankers spent the weekend in the market, talking to funds before the owners decided to slash the price to $ 1.78 in order to ensure that the stock gets away and trades well in the aftermarket. After the organization is listed, the owners will keep a majority share in it.


“It arrives at an exciting time for Australian initial public offerings. Investors have flocked to the technology sector and yield-based offerings like Home Consortium and FINEOS Corporation. Still, they have shied away from others like gas services company MPC Kinetic, which was dismissed last week. ”James Peterson, Ingerson Capital Partners Head of Analytics.


Latitude's float has been pitched along both technical and yield lines. It is a consumer finance company that specializes in point-of-sale finance, credit cards, and loans and is primarily owned by financial investors KKR, Varde Partners, and Deutsche Bank.


In the 12-months leading up to June 2020, the company forecasts $ 1.1 billion in operating income and $ 287.6 million in cash net profit.


Under the broker firm offer, around one-third of the offer has been taken up by retail investors. Latitude's three brokers --Goldman Sachs, Macquarie, and UBS --will operate an institutional bookbuild starting Tuesday.


On a market capitalization basis, the offer valued Latitude at $ 3.56 billion, implying 12.4 times anticipated earnings for the 12-months to June 2020 and a 5.2% dividend yield.