KKR & Co Cuts IPO Price for Latitude Financial


Latitude Financial’s Owners Seek to Raise More than $1 Billion

KKR & Co and its investment partners will lower the IPO price for their Australian non-bank lender Latitude Financial. A Reuters report indicates that the private equity giant could drop the price by at least 11%. This is likely a disappointment for KKR & Co. and its partners Deutsche Bank and Varde Partners. This is the second attempt to list Latitude by the companies.

Last month, the companies issed a prospectus that set a valuation between A$2 and A$2.25 per share. The Wall Street Journal reported that KKR and its partners sought to raise $945 million in the IPO. However, that figure was originally higher – upwards of $1 billion to $1.25 billion when the firms started kicking the tires.

Reuters reports that the new offering price sits at A$1.78. That figure reflects a valuation of 11 times profit and a dividend of 5.8%

KKR & Co Eye Latitude Financial IPO

It has been a difficult two years for Latitude Financial. The company faced a probe from the Australian Securities & Investments Commission (ASIC) over alleged misconduct. The firm refunded $1.1 million to 905 customers after it mis-sold credit insurance to these individuals. The regulator also said the firm declined claims to credit card customers due to a faulty automated process.

The probe negatively impacted expected efforts to launch an IPO in 2018. The three companies had purchased Latitude in 2015 when the firm had a enterprise value of $8.2 billion.

Meanwhile, the company has seen new competition arrive in the form of digital-only banks, payment firms, and other Fintech startups.

[Related: Libra Association to Meet in Switzerland to Discuss Digital Assets: Make or Break?]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”

Latest Alternative Investment News

Hedge Funds: Four Portfolio Managers Leave Citadel
April 6, 2020     Hedge Funds, News

Volatility has shaken the markets. The Dow had its worst quarter in history. The U.S. economy could see GDP fall by 30% this quarter. And four portfolio managers at Citadel…

Private Equity: Silver Lake Partners Pushes Massive $16 Billion Fund
April 6, 2020     Latest News, News, Private Equity

Silver Lake Partners is going big with its latest fund. The technology-focused private equity fund wants to raise a new fund worth $16 billion. Raising funds as market prices have…

Liquid Alternatives: How the Pandemic Could Affect ESG Investing (and ETFs)

The coronavirus pandemic throws up ESG in a new light. Far from spelling doom for ESG investing, the pandemic may have given it fresh, positive potential. An article by Marlene…

Venture Capital: Call for UK Government to Support Startups During the Coronavirus Crisis
April 6, 2020     News, Venture Capital

The Save Our Startups (SOS) campaign launched in the UK on Sunday. It aims to mobilize financial support for the 30,000 startups and high-growth businesses in the country, many of…

Scroll to Top