An online business lender is aiming to raise around $146million through an initial public offering (IPO).
Prospa is expected to list the ASX on 6 June, offering shares at an offer price of $3.64 per share. The IPO was lodged with the Australian Securities and Investments Commission (ASIC).
The majority of funds raised in the IPO will be used to fund growth in Prospa’s existing business model and for investing in new product categories and expansion into New Zealand.
While there will be no general public offering of shares, offers will include:
The IPO will see long-term, London based venture capital investor Entrée Capital support the offer to maintain its 34% stake in the company.
In addition, Australian based venture capital investors Airtree has invested an additional $3m giving it a stake in the company of 8.4%, whilst SquarePeg has invested an additional $10m, increasing their holding from 3.2% to 4.4%.
Chairman Greg Ruddock said on behalf of the Prospa Board that he was pleased to offer the opportunity to become a shareholder in the company.
He added, “Prospa has flourished by offering fast, flexible loans to Australian small businesses that have historically been underserved by traditional banks. Since inception, Prospa has strategically invested in the two most important parts of our business, people and technology. This offer marks another stage of growth for the company, as we look to expand into new geographies and products.”
Co-CEO Greg Moshal said, “From the very beginning, Prospa has set out to be the market leader at what we do, lending to small businesses. And we have done this by obsessing about our customers and finding new ways to improve their chance of success by designing outstanding new customer solutions. Prospa’s success has been the result of a group of smart, talented and passionate people uniting around a common mission to change the way small businesses experience finance.”
Co-CEO Beau Bertoli added, “We started Prospa in 2012 because it was clear to us there had to be a better way. As first mover in a nascent market, Prospa has led the way in enabling small businesses to succeed. Listed life marks another milestone in our growth, however our approach to business won’t change. We are relentlessly looking for a better way to operate, continuously innovating our products and business model and using data to make great decisions and better manage risk.”
Post-IPO, Airtree and SquarePeg will be escrowed to the end of the forecast period.
Entrée Capital and Prospa’s co-founders Greg Moshal and Beau Bertoli, chairman Greg Ruddock and non-executive director, Avi Eyal (co-founder and Managing Partner of Entrée Capital) will be escrowed until the release of Prospa’s FY19 full year audited results.
Earlier this year Prospa confirmed the appointment of Greg Ruddock to the role of chairman of the board, and Gail Pemberton AO and Fiona Trafford-Walker as independent non-executive directors.
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