PEXA IPO expected for end of June

Link/PEXA/

31 May 2021
| By Jassmyn |
image
image
expand image

Link Group has signed an underwriting agreement for the purposes of a proposed initial public offering (IPO) of its property settlement business, PEXA, with an enterprise value of $3.3 billion.

According to an announcement on the Australian Securities Exchange (ASX), Link said its shareholding in PEXA would increase from 44% to 47% and Link Group would receive a minimum $50 million in cash as a result of the IPO process.

“The proposed PEXA IPO has an expected ASX listing date towards the end of June 2021,” it said.

“The Link Group Board unanimously concluded that retaining exposure to Link Group’s interest in PEXA, whilst also realising a transparent valuation through a listing and flexibility to monetise its interest over time, was in the best interests of shareholders.”

Link Group’s chief executive and managing director, Vivek Bhatia, said this was an “outstanding outcome” for shareholders.

“In October, 2020, the Link Group Board considered that the private equity consortium’s bid for Link Group, including its interest in PEXA, significantly undervalued Link Group’s business including the PEXA asset,” Bhatia said.

“This has now demonstrated through the book build undertaken on Friday valuing PEXA at $3.3 billion, representing an increase of approximately 70% on the consortium’s implied valuation of PEXA at $1.95 billion.”

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 4 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 2 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 ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND