Fiducian closes over-subscribed
Fund manager and financial planning firm, Fiducian Portfolio Services, has closed its $22.4 initial million public offering oversubscribed.
Fiducian head, Indy Singh, says the popularity of the offering reflected the successful business model the firm has adopted and its rapid growth over the last few years.
"We are still a tiny player in the industry but our vision is far superior than the other larger fund managers," Singh says.
He says the capital raised from the float will allow Fiducian to achieve its goals at a much faster rate than through organic growth alone.
Tim Hosking, director of Ord Minnett Corporate Finance - underwriter of the Fiducian offer - says institutions took up 75 per cent of the 18.7 million $1.20 ordinary shares offered.
"The level of investor interest was driven by Fiducian's unique exposure to ongoing growth in the superannuation industry combined with the support of Fiducian's adviser groups who have a financial interest in the company," Hosking says.
Fiducian is due to list on the Australian Stock Exchange (ASX) on September 12.
"The float will enable us to expand our financial planning base. We'll also be looking to improve the administration system to grow our DIY/Corporate super business, wrap account and risk broking," Singh says.
"And we'll be able to complete and improve our financial planning software."
Singh says Fiducian's ASX listing will speed up its expansion both in Australia and overseas.
"Some overseas companies have already spoken to us," he says.
Singh claims Fiducian is not positioning itself for a takeover by a larger fund manager but wants to use the float to become a "major financial service provider".
"In this age of mega-mergers there is always room for a smart niche player," Singh says.
"We don't want to be just another conduit for a big fund manager to collect revenue. As a group, including the shareholders, we share a vision to build a greater business."
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