ASIC probes iSelect: report

ASIC has demanded iSelect give the corporate regulator its documents relating to its stock exchange debut that left shareholders fuming.

The Australian Securities Investment Commission (ASIC) has demanded iSelect (ISU) relinquish its internal documents to the corporate regulator following its calamitous stock exchange debut, Fairfax Media reports.

One notice obtained by the media outlet required the health insurance comparison business to hand over all of its documents relating to the full-year profit miss last month – including financial records, emails, and meeting minutes – as well as earlier statements relating to its prospectus.

iSelect nosedived late last month after it was revealed revenue and net profit missed their targets for the 12 months to June, even though the company had said it would meet guidance in its prospectus just two months earlier. The company listed on the stock exchange on June 24, less than a week before it ruled off its books for the end of the financial year.

The missed guidance shredded iSelect's credibility as it was the second major hitch for the operation, the first being when the company slumped 15% on its debut.

iSelect was at $1.41 at Friday's close, 24% below its $1.85 initial public offer price.

Graph for ASIC probes iSelect: report
Source: Bloomberg