Latitude Financial lists on the ASX
Instalments and lending business Latitude Financial has been admitted to list on the Australian Securities Exchange (ASX) under the code of LFS, following the successful completion of an initial public offer.
Latitude’s securities will commence trading at noon (AEST) today on a conditional, deferred settlement basis, and on a normal settlement basis from Thursday, April 22, 2021.
Latitude secured total commitments of $479 million from a combination of strategic investor Shinsei Bank, and from institutional and retail investors through the initial public offer. The initial public offer raised a total of $200 million, with shares offered to investors at $2.60 per share, and was oversubscribed. The initial public offer was underwritten by Joint Lead Managers BofA Securities, Credit Suisse and Jefferies. The commitment from Japan-based Shinsei Bank will result in a shareholding in Latitude of 10% on completion.
There will be one billion shares on issue at listing, valuing Latitude at $2.6 billion. Existing owners KKR, Värde Partners and Deutsche Bank (via their holding company KVDS) will retain 66.4% of the company after listing, with their shares subject to escrow. There are approximately 330 million shares of free float upon listing.
Latitude Chairman Mike Tilley said: “Today is an important day for Latitude as we list on the ASX. We look forward to the benefits that come from having access to public equity capital markets, buoyed by the tremendous support from investors during our initial offer, which was oversubscribed. We will be working hard to ensure our new shareholders are rewarded for their faith in Latitude.”
Latitude Managing Director and Chief Executive Officer Ahmed Fahour said: “Latitude is highly profitable and performing strongly as the economy recovers. With the ASX listing we are well placed to leverage our scale, the strength of our many high-performing retail partners and pursue further growth in Australia and New Zealand, as well as new markets.”
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Latitude is a leading Instalments and Lending business, with 2.77 million customer accounts and more than 3,400 merchant partners (with over 10,600 outlets) in Australia and New Zealand.
Latitude’s merchant partners include major retailers across a wide range of living and lifestyle goods, including Apple, Harvey Norman, The Good Guys, JB Hi‑Fi, Samsung and Luxury Escapes, providing Latitude with significant scale and distribution for its products. Latitude’s lending products are also distributed by a network of over 5,800 accredited brokers in Australia and the Kiwibank’s branch network in New Zealand.
Headquartered in Melbourne, Australia, Latitude employs approximately 1500 FTE staff. In 2015, a consortium of investors consisting of KKR, Värde Partners and Deutsche Bank acquired the business from GE.
Latitude has since established itself as a disruptor in payments and lending, combining the risk management processes and long‑standing customer relationships fostered under its GE heritage with substantial investment to create a unified brand and experience for its partners and customers, with upgraded technology, an established funding platform and ongoing customer innovation.