A major aggregator has begun the process of listing on the ASX, with its IPO expected to raise around $120-140m.
AFG has lodged a prospectus with ASIC for an IPO on the Australian Securities Exchange. The aggregator said its IPO was expected to raise between $121.3m and $140.1m, based on a price range of $1.20 to $1.38 per share. Around $35m will be raised by the issue of new shares by AFG, while around $95.9m will be raised by the sale of shares by existing shareholders.
“We have received a number of offers for the company since we started operations more than 20 years ago, but we believe listing on the ASX is the best avenue to ensure AFG’s sustainable growth and to retain and attract brokers to our network,” AFG managing director Brett McKeon said.
McKeon said the funds raised by the IPO would be used to purchase the equity of certain existing shareholders and to provide funding for operations and growth. McKeon forecast the group's public offering would deliver benefits to future shareholders.
“We have shown a consistent ability to generate profits through the residential property cycle and with almost 50 per cent of our revenues being generated through trail commission on the existing AFG Loan Book, we believe we have an attractive mix of recurrent earnings and growth.”