Spring Financial Group is the latest financial planning group to seek a listing on the Australian Securities Exchange (ASX), after launching an initial public offer (IPO) in late December.
The move to issue an IPO was flagged in October after Spring FG announced the appointment of former Macquarie Private Bank head, Guy Hedley, as chairman, and follows successful offers by Barrack Street Investments Limited and Blue Sky Alternative Investment Limited, last year.
The group aims to raise $4 million through the IPO, which has been fully underwritten by KTM Capital Pty Ltd.
Hedley said the IPO would enable Spring FG to implement its strategies for both organic growth and growth through acquisitions.
“As a listed company, Spring will be better placed to fund and make further acquisitions and also expand its current business in providing wealth creation and wealth management solutions and tax and accounting services for its client base,” he said.
With a price-to-earnings ratio based on the 2015 financial year pro-forma forecast 6.25 times, and an indicative dividend yield based on the offer price of 30 cent per share of 8.8 per cent, KTM Capital principal, Tod McGrouther, said Spring was an attractive opportunity for investors.
“Spring Financial Group has been profitable since its first year of commercial operations. It has a strong board and a history of paying franked dividends which presents an attractive proposition to potential investors,” he said.
“With continued consolidation happening in the industry Spring has an opportunity to emerge as a significant player.”
The IPO is expected to close at 5pm on 16 February, with settlement due on 24 February.
