SME-focussed neobank Judo Bank hit the ASX on Monday morning in what is thought to be the first time that an ADI has arrived on the Australian stock exchange since Macquarie Bank hit in 1996.
Many had anticipated that Judo would do well, but few could have predicted that it would exceed its listing by 7.6% on its first day of trading, making it the fourth biggest IPO of the year.
Judo’s IPO was worth $657 million, up with fellow financial companies like Pepper Money and Latitude Financial Services, resulting in a valuation that moved to $2.5 billion by the end of the day.
The strength of the IPO reflects Judo’s proposition to lend to SMEs based on differing criteria than the major lenders, and that they have so far backed their strategy up with results: their loan book sits north of $4bn and is expected to top $6bn in the next 9 months.
“Since day one, Judo Bank’s purpose has been clear, to be Australia’s most trusted SME
business bank by bringing back the craft of SME relationship banking,” said CEO Joseph Healy in the notes that accompanied the IPO.
“Banking as it used to be, banking as it should be.” Australian SMEs have been unable to secure the lending they need and the service they deserve to support and grow their businesses.”
They have been forced into a model that required them to contact their bank via a call center; use their homes as collateral for business loans; and contend with a ‘computer says no’ approach to lending.”
“Judo Bank’s IPO will mean more SMEs will have access to a relationship bank that listens,
understands and boldly backs their business.”
“I would like to welcome our new shareholders to the register. We have received wonderful support and interest throughout the IPO process from a wide range of investors, some of whom have been with us since the very beginning.”
“As CEO and co-founder, I also want to thank our customers, existing shareholders, board, external advisers and the team at Judo Bank for their support. This is an important milestone for our business as we continue to deliver against our purpose, and build a truly world class
SME business bank,”
