IPO of Latitude Financial Services

[Isochronous]

Going by Fahour's track record, the IPO will be very good for him personally but perhaps less so for shareholders or customers.

 

[drron]

I was also tipped Afterpay.But if you have it in your portfolio now might be a good time to sell.The activist who went after Wework has announced he is now concentrating on Afterpay.

 

[cove]

The application price has been announced as $2 which is the bottom end of the price range. Two days ago I heard that they had the issue 70% covered so that means quite a few folks are hesitating to invest if that 70% proves to be true.

 

[Flying mermaid]

They have just repriced it at $1.78 - clearly having problems getting it away. At $1.78 it’s more interesting, but I think I will still stay clear

 

[cove]

Latitude will be very lucky if they get their company floated.
I just use their 28 degrees credit card but never for cash advances.
Their accounts that they have to write off are a largish proportion of their gross profit each year.

 

[Flying mermaid]

Impairments are always higher in that sector - not sure Latitude is any worse than their competitors. They are dressing up their BNPL offering, but seem to be behind everyone else in rolling it out and also their debt levels seem a bit high to me, compared to others in the sector.

I prefer to sit on the sidelines and if that means missing out on an early profit that’s fine. As a retiree I need to be more cautious

 

[moa999]

They have just repriced it at $1.78 - clearly having problems getting it away.

Ouch.
Very rare to have to reprice below the range, particularly that far

 

[cove]

Tuesday will determine whether the Latitude float is on or off I am thinking....or Wednesday at the latest. I am unsure if the price cut to $1.78 will get investors interested enough.

 

[Flying mermaid]

Tuesday will determine whether the Latitude float is on or off I am thinking....or Wednesday at the latest. I am unsure if the price cut to $1.78 will get investors interested enough.

I think at $1.78 they will. Morningstar came up with a fair value of $2, so at a $1.78 and a pretty fancy dividend they should get enough takers.

 

[cove]

This price change did get me thinking about how little GE sold out for to the current group of private equity folks. Dropping a billion off the starting price means it was bought for a more modest amount when GE bailed out.

 

[cove]

The latest price is closer to fair now and the vendors would want a price above the float price as they have more shares to flog off in their final exit some time later.

 

[Flying mermaid]

Apparently demand exceeds stock offered.....

 

[amaroo]

Article in the The Australian - IPO has been pulled

The $3.2bn float of Latitude Financial Group has been pulled.
It comes after the bookbuild for the deal closed Tuesday and the company was set to list on Friday.

Earlier in the day, Latitude sent a message to the market for its initial public offering suggesting that early indications of demand exceeded its offer size.

This was assuming that $330m of the deal is allocated to retail investors.

Retail investors had been asked to confirm their broker firm allocations over the course of Tuesday.

It comes after Latitude Financial Group on Monday repriced its initial public offering to $1.78 per share in a move that will see the business list as one with a $3.17bn market value.

The raise size was also scaled back to about $1bn.

more to come

 

[cove]

Bugger no $50 million for the former postie!

 

[moa999]

Demand exceeds offer size to pulled in under 6 hours.
Just shows how jittery things are despite markets at almost all time highs and lows interest rates.

 

[Flying mermaid]

Demand exceeds offer size to pulled in under 6 hours.
Just shows how jittery things are despite markets at almost all time highs and lows interest rates.

I was a bit sceptical when I saw the demand exceeds stock message - sounded like a bit of a desperate attempt to generate confirmed orders ......

PE have only got themselves to blame - too many floats that didn’t perform - Myers and Dick Smith come to mind ....

 

[tgh]

Perhaps the market is telling us all something , but are we listening ?

 

[RooFlyer]

Perhaps the market is telling us all something , but are we listening ?

Nah. I think the market is simply saying 'Turn it up - too greedy'. The CEO's reputation would not have helped.

 

[andy2015]

Just shows how jittery things are despite markets at almost all time highs and lows interest rates.

It seems there is no appetite to be force fed dog cough.

Like WeWork in the USA.

 

[tgh]

Nah. I think the market is simply saying 'Turn it up - too greedy

With respect Roof_lyer….there is always a message from the market….
Sometimes you can get anything away , but In this case the market has been more circumspect.
This tells me the market is cautious and that canny investors should be aware of the vibe.. no more.. and no less…..