Brokers to get first dibs on AFG shares

The IPO is expected to raise between $121.3 million and $140.1 million, based on an indicative price range of $1.20 to $1.38 per share. Based on the mid-point of this range of $1.29 per share, AFG will raise approximately $35 million with the issue of new shares (before costs), and approximately $95.9 million will be raised by the sale of shares by existing shareholders.

“The IPO includes an institutional offer, a broker firm offer and a $10 million priority allocation to AFG staff, mortgage brokers and others,” the group said in a statement.

Macquarie Capital is the lead manager and Morgans Corporate Limited is the co-manager to the IPO.

The AFG loan book currently sits at more than $100 billion, the largest Australian loan book outside the major banks.

AFG co-founder and managing director Brett McKeon said the group has shown a consistent ability to generate profits through the residential property cycle and with almost 50 per cent of its revenues being generated through trail commission on the existing AFG loan book.

Mr McKeon will remain as managing director of AFG upon listing on the ASX. Co-founder Malcolm Watkins will also remain on the board in an executive function, and Kevin Matthews will become a non-executive director.

Tony Gill will remain as independent non-executive chairman, with independent non-executive directors John Atkins, Jim Minto and Craig Carter completing the board.

AFG shares are currently expected to begin trading on the ASX on a deferred settlement basis on or around 22 May 2015, under the ticker code ‘AFG’.