Australian Non-bank Consumer Lender Latitude Withdraws IPO

Latitude Financial Group Ltd., an Australian non-bank consumer lender, withdrew its initial public offering on Wednesday citing concerns about how the company would trade on debut.

The firm said it wasn’t proceeding with the share sale which could have raised about A$1.04 billion ($703 million) after spending Tuesday trying to line up potential investors.

“The board and shareholders were conscious of the importance of ensuring a strong after market for the company,” Chairman Mike Tilley said in a statement. “Latitude is a strong business and its management team will continue to execute on the growth strategy.”

Latitude’s offering would have surpassed Magellan High Conviction Trust’s A$862 million IPO as Australia’s biggest this year, according to data compiled by Bloomberg. The company was scheduled to start trading on Friday.

Its shares were being offered at A$1.78 each, giving it a valuation of around A$3.2 billion, according to terms of the deal obtained by Bloomberg. The offer price was below an initial indicative range of A$2 to A$2.25. Goldman Sachs Group Inc., Macquarie Group Ltd. and UBS Group AG were lead managers of the deal.

Bloomberg