Spring IPO follows a growing trend

ASX/financial-planning-group/australian-securities-exchange/chairman/

5 January 2015
| By Nicholas |
image
image
expand image

Spring Financial Group is the latest financial planning group to seek a listing on the Australian Securities Exchange (ASX), after launching an initial public offer (IPO) in late December.

The move to issue an IPO was flagged in October after Spring FG announced the appointment of former Macquarie Private Bank head, Guy Hedley, as chairman, and follows successful offers by Barrack Street Investments Limited and Blue Sky Alternative Investment Limited, last year.

The group aims to raise $4 million through the IPO, which has been fully underwritten by KTM Capital Pty Ltd.

Hedley said the IPO would enable Spring FG to implement its strategies for both organic growth and growth through acquisitions.

"As a listed company, Spring will be better placed to fund and make further acquisitions and also expand its current business in providing wealth creation and wealth management solutions and tax and accounting services for its client base," he said.

With a price-to-earnings ratio based on the 2015 financial year pro-forma forecast 6.25 times, and an indicative dividend yield based on the offer price of 30 cent per share of 8.8 per cent, KTM Capital principal, Tod McGrouther, said Spring was an attractive opportunity for investors.

"Spring Financial Group has been profitable since its first year of commercial operations. It has a strong board and a history of paying franked dividends which presents an attractive proposition to potential investors," he said.

"With continued consolidation happening in the industry Spring has an opportunity to emerge as a significant player."

The IPO is expected to close at 5pm on 16 February, with settlement due on 24 February.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND