Latitude scraps second IPO bid
The biggest IPO in Australia this year falters again
Latitude Financial, Australia’s largest non-bank lender, has shelved its second attempt at an initial public offering because investors, shareholders and executives became increasingly concerned that shares would fall significantly on debut.
Offering personal loans, insurance services and credit cards, Latitude originally priced shares at A$2 but lowered this to A$1.78. This reduction to a A$3.2bn valuation came as analysts expressed their concerns that shares would rise in the first day of trading.
The A$1bn (£528m, $674m) IPO would have surpassed Magellan High Conviction Trust’s A$862m (£455m, $581m) listing, the largest in Australia this year.
Financial stocks have struggled in Australia this year in light of a year-long Royal Commission inquiry into financial sector misconduct.
Latitude chairman Mike Tilley attempted to keep morale high following the decision, stating: “The board and shareholders were conscious of ensuring a strong after-market [performance] for the company.”