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  1. #1
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    Lightbulb Latitude Financial Group IPO

    It is no secret this is to list on the ASX soon, key details from what I can gather:
    - An Australian consumer finance company (GEM Visa etc - essentially GE Finance reincarnated)
    - Expected to seek to raise about $2 billion for its IPO, in a deal valuing the company's equity at about $4 billion.
    - Exact pricing and structure is expected in front of investors next month [August], when the company lodges a prospectus with the corporate regulator.
    - $410 million of net cash
    - $6.59 billion wholesale funding.
    - Targeting a 65 per cent to 75 per cent dividend payout ratio,
    - Valuation implied a 5.2 per cent to 7.8 per cent yield, dividends commence beyond the first half of FY19.
    - "It expects to grow its balances by 8% CAGR and its cash NPAT by 17% CAGR between FY16 and LTM to June 19."
    - Likely to report $1.05 billion operating income in the year to June 2019 and a $266.3 million cash net profit. Those numbers would be up from $1.01 billion and $244.1 million in the 2018 financial year.
    - Goldman Sachs said Latitude's key strengths were: strong cash conversion and dividend capacity, digitally enabled business driving scalability, proven credit performance and risk management, multi-channel distribution network with low customer acquisition costs, focused growth strategy and a diversified and broad funding base.

    I would argue this is similar to flexigroup, but they wouldn't, as FXL is currently valued far far cheaper!

  2. #2
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    Default

    Hey TJ have a look at COG. Disclose holding.

  3. #3
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    Thoughts on COG JT??

  4. #4
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    https://www.afr.com/business/banking...0181001-h162x0

    Looks like it is all off... Flexigroup's low share price/valuation (even though Latitude like to think they are very different to them and don't consider them a comparable) is probably a large contributor to why some fund managers had expressed concerns about the $4 billion valuation being sought by the vendors.
    Last edited by trader_jackson; 01-10-2018 at 05:56 PM.

  5. #5
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    They say its all back on folks...

    https://www.afr.com/street-talk/bank...0190725-p52ank

  6. #6
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    The drum continues to beat louder...

    https://www.afr.com/companies/financial-services/latitude-reveals-harvey-norman-payments-plan-20190903-p52nhs


    https://www.afr.com/chanticleer/lati...0190903-p52nkm

    (if they paid a 7.8 per cent yield, that alone would likely be very favorable in this environment)

  7. #7
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    What's the ticker? The only Latitude I could find is a mining company.

  8. #8
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    Not listed yet, this is to be listed soon they say...
    And you'll know about it as it is gonna be a huge listing! (billions and billions)

  9. #9
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    Quote Originally Posted by trader_jackson View Post
    Not listed yet, this is to be listed soon they say...
    And you'll know about it as it is gonna be a huge listing! (billions and billions)
    Thanks. Currently I don't own any shares in the finance sector but the summary in the first post did wet my beak.

  10. #10
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    And we're on folks...

    https://www.afr.com/street-talk/term...0190926-p52v1p

    - Market cap $3.56 to $4 billion
    - 12.4-times to 13.9-times FY20 PE
    - 4.6% - 5.2% yield

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