Platform provider Netwealth has lodged a prospectus with ASIC for an initial public offering on the ASX, following months of conjecture.
In June ifa reported that equity shareholding changes were likely at the company, with an IPO one of the primary options on the table.
In a statement to ifa, Netwealth Group Limited expects to commence trading on 20 November 2017, and is offering 71.3 million shares at $3.70 each, to raise $264 million, and will list with a market capitalisation of around $879.2 million.
Netwealth Group Limited joint managing director Matt Heine said the company had “a clear growth strategy”.
“Netwealth has a clear objective to capture a greater share of the market in both the superannuation and non-superannuation sectors through its innovation capabilities and ability to quickly respond to the needs of financial intermediaries and clients,” he said.
As part of the listing, Netwealth will be restructured to make Netwealth Group Limited the holding company for Netwealth Holdings Limited, which operates the Netwealth financial services business in conjunction with its subsidiaries.
The proceeds from the IPO will be paid to existing shareholders to fund the purchase of Netwealth Holdings Limited, the statement said.
The offer is being managed by both Credit Suisse Australia and the Australian branch of UBS AG.
The move will support the business’ growth in the local market.
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