Mortgage broking group AFG has kicked off its initial public offering (IPO), with the aim to sell $101.5m in shares and raise almost $140.1m.
The IPO is also expected to see AFG’s founders and shareholders, including Macquarie Group, pare their stakes, The Australian Financial Review reported. The indicative per-share price range is between $1.20 to $1.38, starting 22 May.
Managing director Brett McKeon said the move will “focus on organic growth”. He added that executing existing strategies to increase AFG's loan book and broker numbers were "front and centre" as the company sought, among other things, to grow its own branded and commercial mortgages.
"The industry has certainly gone through some consolidation and it will keep going through further consolidation," he was quoted as saying.
McKeon also confirmed AFG, whose loan book amounts to over $100bn, was in talks to add lenders to its panel. The company expects broker-originated mortgages to cover 60% of the market in the next two years, up from 50.4% in 2014.
AFG has over 2,300 brokers and a panel of 30 lenders. Its competitors are brokering firms, including Mortgage Choice.
Collections: Mortgage News
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