Speculation that
Connective could be the next major mortgage aggregator to float on the ASX has been doing its rounds since its rival
AFG had its share market debut last month.
According to the
Australian Financial Review,
sources say Connective has done the rounds with a handful of fund managers recently, pitching its unique business model which allows brokers to keep commissions in return for a flat monthly fee – setting it apart from its would be share market rivals AFG,
Aussie and
Mortgage Choice.
However, there doesn’t seem to be any current plans in play to list the business.
At its 2014 annual broker conference held in October, Connective principal Mark Haron told attendees that the group had added more than 500 new brokers in the past year.
In December, the aggregator achieved its highest month of settlements ever, totalling $3.14 billion and up 36% from December 2013. In May, Connective officially launched its new range of white label home loan products under its ‘Connective Home Loans’ brand, funded by Macquarie and Advantedge.
However, AFG had a rocky start in its share market debut amid reservations about banks tightening mortgage lending standards. When shares in the company started trading on the Australian Securities Exchange in late May, they only fetched $1.18 – a 1.2% discount to their $1.20 offer price. But the stock recovered to close its first session bang-on the lower end of its offer price, at $1.20.
Australian Broker has contacted Connective for an official comment, but is yet to receive a response.
