AFG set to float with $257 million market capitalisation

AFG set to float with $257 million market capitalisation
Jonathan ChancellorMay 19, 2015

Mortgage broker Australian Finance Group has raised $122 million for its initial public offering, after the float priced at $1.20 a share on Tuesday. 

AFG is expected to begin trading with a $257.8 million market capitalisation on Friday. 

Sources told The Australian Financial Review Street Talk column that bookrunner Macquarie and AFG's existing shareholders closed the raising at $1.20, which was the bottom of the $1.20 to $1.38 a share range. 

The price implied 14.4-times forecast proforma net profit for the 2015 financial year.

It represents 13.1-times 2016 financial year forecasts.

AFG is majority owned by founding shareholders including managing director Brett McKeon and directors Malcolm Watkins and Kevin Matthews. 

Macquarie Bank also has a 9.9% stake.  

Macquarie is lead manager, while Morgans Corporate is co-manager.

Herbert Smith Freehills was legal adivser to AFG.

 

 

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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