Fiducian prepares for stockmarket debut
Financial planning co-operative Fiducian Portfolio Services is to bring forward the date for its listing to capitalise on the high prices currently being offered for finan-cial planning groups.
Financial planning co-operative Fiducian Portfolio Services is to bring forward the date for its listing to capitalise on the high prices currently being offered for finan-cial planning groups.
A meeting of Fiducian principals later this month will decide the new date for the float of 60 per cent of the business. Managing director Indy Singh Singh says there has been huge interest from investors and says the market “would price it on pretty attractive multiples” whenever it decided to float due to its high growth potential.
“Our clients would love to have some ownership and we have fund managers wanting a share. It’s a question of fine detailing,” Singh says.
Initially, the listing was slated for as far off as three years or when funds under management reached $2 billion. However, the demand for financial services distri-bution groups in the market has Fiducian members reconsidering this strategy.
“There’s a bit of a frenzy right now,” Singh says.
Last year saw a spate of purchases of financial planning groups, including the pur-chase of Godfrey Pembroke by Lend Lease for $40.6 million and Challenger Inter-national’s successful $8.7 million bid for the financial planning operations of Gar-risons (it also bought management rights for its Synergy Master Trust for $28.25 million).
Singh says he has been advised by several brokers the time is right to list now.
“There’s a demand for our kind of company. The market is looking for a value company with growth prospects.”
The four initial advisers to the float have also been named. They are Ord Minnett, Salomon Smith Barney, Credit Suisse First Boston and Burdett Buckeridge and Young.
Fiducian currently has about $400 million under management. Singh says a public float will be feasible with anywhere between $400 million to $700 million under management, however he says he will need to seek assurances from Fiducian shareholders and its adviser council before announcing putting into action any strategy.
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