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LFS - Latitude Financial Group

Discussion in 'Stocks I-P' started by System, Oct 8, 2019.

  1. System

    System Administrator

    Likes Received:
    Jun 27, 2010
    Latitude is a leading digital payments, instalments and lending platform, with 2.6 million customer accounts and more than 1,950 merchant partners across Australia and New Zealand.

    Latitude provides innovative products and services that support the needs of customers and merchants and other commercial partners, leveraging its technology and database of customer information.

    Latitude offers its customers in Australia and New Zealand payment and instalments products ('L-Pay') and lending products ('L-Money'). Its Business-to-Business-to-Consumer ('B2B2C') and Direct-to-Consumer ('D2C') distribution model enables customers to transact through Latitude's established network of commercial partners, as well as with Latitude directly, online and by phone.

    Headquartered in Melbourne, Australia, Latitude employs approximately 1,600 FTE staff.

    It is anticipated that LFS will list on the ASX during October 2019.

  2. bigdog

    bigdog Retired

    Likes Received:
    Jul 19, 2006

    Ahmed Fahour's Latitude pulls plug on $3.2b float
    By Colin Kruger and Clancy Yeates
    October 15, 2019 — 8.06pm

    Ahmed Fahour's Latitude Financial Group has failed in its second attempt at a public listing despite its share offering being significantly discounted this week.

    The bookbuild for the Latitude initial public offering (IPO), the biggest proposed sharemarket float of the year, was due to close at 5pm on Tuesday.

    Sources close to the deal, who cannot talk officially due to confidentiality around the transaction, confirmed late on Tuesday that the IPO had been called off.

    “They raised the money, but there was a concern over quality in a small portion of the bookbuild," said one source.

    This prompted concern about after-market performance of the shares if the planned float went ahead on Friday.

    A fund manager, who did not want to be named because discussions of the planned IPO were still confidential, said he had been told the float had been pulled, though this had not come from the bankers on the deal.

    "There just wasn't enough demand even though it was covered at the bottom end of the range," the fund manager said.

    "There probably wasn't enough to ensure a suitable after-market."

    A spokesman for Latitude's current owners declined to comment on Tuesday evening.

    As recently as midday on Tuesday, the lead managers for the IPO, Goldman Sachs, Macquarie Group and UBS, sent a message to brokers expressing their confidence that buyers had been found for the billion dollars worth of shares on offer to investors valuing the consumer finance group at $3.2 billion.

    It has been a rough ride for the consumer finance group which was sold by its former parent GE in 2015 to private equity firms KKR, Varde Partners, and Deutsche Bank. The three investors would have still owned more than half of the Latitude business after the float.

    During the past few days there have been several analysts talking down the float opportunity. On Monday James Greenhalgh from Intelligent Investors called it "one of the most unappealing large IPOs we have ever seen".

    Latitude Group hired former Australia Post chief executive Mr Fahour last year after its attempt at a $5 billion IPO failed.

    The company announced its latest attempt to float last month with a share price of up to $2.25, which would have valued the company at up to $4 billion.

    On Friday, the float's managers confirmed an offer price of $2 a share. On Monday this was discounted to $1.78.

    Latitude, formerly known as GE Money, makes about half its operating income from instalment loans, with most of the remainder coming from personal loans, auto loans and credit cards. Its business includes Myer credit cards and point of sale finance at stores such as Harvey Norman, Apple and JB Hi-Fi.

    In other news, Latitude continued its drip feed of merchant signings for its new buy-now, pay-later product announcing on Tuesday that Virgin Australia will be using the new service next year.

    It was hoped that its aggressive push into this Afterpay-dominated market would help boost the company's valuation.

    Virgin customers will be able to use the interest-free instalment payment service, LatitudePay, for purchases of up to $1000 in the first half of 2020. A service for purchases of more than $1000 will be available later next year.

    "This partnership will provide greater payments flexibility for Virgin Australia's customers, who now have the choice to 'fly now, pay later' when they book a domestic or international flight," said Mr Fahour.
  3. galumay

    galumay learner

    Likes Received:
    Sep 17, 2011
    Australia's version of WeWork!
    No Trust likes this.
  4. So_Cynical

    So_Cynical The Contrarian Averager

    Likes Received:
    Aug 31, 2007
    That's actually called Wotso and wil be spun out of BWF sometime over the next few months...but yeah i know what you mean, a dodgy float is a dodgy float, fecking private equity.
    No Trust likes this.
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