Prospa makes its ASX debut
Prospa has finally managed to list on the Australian Securities Exchange, with its share price up 18 per cent from its debut price.
Under the initial public offering, the company sold 29 million shares at the premium price $3.78 per share to raise $109.6 million. It stock closed at $4.46 on the first day of trqding.
Following IPO settlement, the company will have 161.4 million shares on issue worth $609.9 million at the IPO price.
The business had initially planned for a listing date a year ago, but the plans were shelved after an inquiry by ASIC into its loan agreements.
Investors in the business now include AustralianSuper.
“The majority of funds raised - above the amount raised to fund cash payments to certain existing shareholders - will be focused on funding the equity portion of the company’s growing loan book and working capital, investment in new products and geographies and to repay corporate debt,” a statement from the group said.
According to Prospa, the 2.3 million small business sector generates 35 per cent of Australia’s GDP.
In January 2019, research by RFi Group and the Centre for International Economics into the economic impact of Prospa lending to small business in Australia, indicated that Prospa’s lending had contributed an estimated $4 billion to Australian GDP and resulted in more than 57,000 annual full-time equivalent positions being maintained.