Prospa founders admit float lost ‘vital momentum’
The co-founders of small business lender Prospa maintain the company can return to the public markets for a future float, after a last-minute regulatory query this week created “confusion” that sapped the listing of vital “momentum.”
Prospa was meant to be one of most-watched floats of 2018, but these plans were thrown into disarray this week as scrutiny from regulators apparently caught the company, and its investment bankers, off-guard.
After Thursday night’s decision to postpone the float, on Friday, co-founders Greg Moshal and Beau Bortoli said Prospa was taking the opportunity to “regroup” and one day return to the public markets.
Prospa had been due to list around lunchtime on Wednesday, but shortly before trade in its shares was due to begin, the company postponed the listing by 48 hours, citing queries from the Australian Securities and Investments Commission.
By Thursday night, it once again pressed the pause button, this time without saying when it would come back to try and list again. Allocations to fund managers will be cancelled and there is no firm date for a listing.
“Unfortunately we had to play the hand we were dealt which was a letter from ASIC on the eve of the IPO,” Mr Bortoli said. “We made the decision on Wednesday to delay for 48 hours, and unfortunately that impacted momentum.”
On Friday, the company said the issues raised by ASIC had not been “material” and it did not need to issue a new prospectus. Mr Moshal said the previous two days had created confusion that contributed to the float being put on ice.
To read more about the Prospa founders and the IPO, please click on the link below…
