Insurance comparison website under ASIC gaze as shares slump
The corporate watchdog is to review the accounts of health insurance comparison website iSelect after questions were raised about profit forecasts given in its prospectus.
The website unveiled a $13.4 million after-tax profit on Thursday, less than the $14.5 million forecast in a summary table on page 5 of its prospectus.
Its shares fell 6 per cent on Thursday and more than 12 per cent on Friday, continuing the company's poor performance since it listed on the ASX on June 24 at $1.85. They are now trading at $1.37.
It is believed that the Australian Securities and Investments Commission is aware of the apparent discrepancy between the forecast and the actual result disclosed.
Website spokesman Matthew Cuming declined to say whether ASIC had been in contact over the results.
"I don't go into discussions with regulators with the media," he said.
However, he defended the prospectus, saying it had been reviewed by lawyers and approved by auditors. "We complied fully with our requirements under ASIC guidelines," he said.
The difference between the prospectus forecast and the actual result was largely caused by the costs of iSelect's initial public offer.