Homeloans Ltd IPO grabs plenty of attention from investors.
The Australian Financial Review has reported this week on the initial public offering of West Australian non-bank lender Homeloans Ltd. With 15 million shares on offer representing 42 per cent of the company, it is the first such offering by a mortgage originator. Interest from investors has been so strong, the IPO is expected to close early sometime around February 16.
Homeloans Ltd, currently operating under the brand names of WA Home Loans, NSW Home Loans, VIC Home Loans and QLD Home Loans, is looking to embark upon an aggressive expansion strategy despite a lending environment which is decidedly tough. The IPO will fund acquisition opportunities of smaller mortgage portfolios and assist the Perth based lender commence its South Australian operations whilst seeking expansion of its business to New Zealand.
With a client base of 16,500 and a mortgage portfolio of $1.4 billion, Homeloans Ltd claims a 4 per cent share of the market in Western Australia, but just 0.7 per cent Australia-wide. Loans sourced from Adelaide Bank, ING, AMS and ANZ’s Origin are sold via 90 commission based mobile lenders and mortgage brokers.