Newcomer Steadfast hits the ground running
The insurance broker network opened 17.4 per cent higher than its initial public offer price of $1.15 when it listed on the Australian Securities Exchange at midday.
The shares kept rising throughout the session to close 23.5 per cent higher at $1.42.
Steadfast chief executive Robert Kelly said the IPO was oversubscribed but the company was still impressed by the stock's performance.
"We are blown away by the fluidity of the stock and the degree of respect that the institutions are paying it," Mr Kelly said.
He confirmed that Perpetual, BT, Colonial First State, AMP Capital and Caledonia Investments all invested in the IPO.
The company raised approximately $334 million through the issue of 290 million shares. About 40 per cent of the stock offered went to shareholders that had sold their businesses into Steadfast Network Brokers and converted their equity into shares in the publicly listed company.
Steadfast's closest comparable business is Austbrokers, whose stock price has been running near record highs. "The biggest difference is it [Steadfast] has only just had all of these businesses rolled up as a product of this IPO," director of Select Equities Danny Goldberg said.
"Perhaps there's a risk in the next 12 months that some of the internal acquisitions that Steadfast has done might not pan out as successfully, [and] the individual business operators might take their foot off the accelerator," he said.
"Barring that, using Austbrokers as a comparative business model, you'd expect it to go quite well."
The ASX says the Steadfast listing is the ninth this financial year and the 49th this calendar year. It is the largest listing since Virtus Health in June which raised $339 million.
Frequently Asked Questions about this Article…
Steadfast, the insurance broker network, debuted strongly on the ASX — its shares opened about 17.4% above the IPO price of $1.15 and closed the session 23.5% higher at $1.42, a rise of nearly 25% on the day.
Steadfast raised approximately $334 million through the issue of 290 million shares in its IPO, according to the company announcement.
Yes. The company said the IPO was oversubscribed and Steadfast's CEO Robert Kelly said they were impressed by institutional demand and the stock's early performance.
Steadfast confirmed that Perpetual, BT, Colonial First State, AMP Capital and Caledonia Investments all participated as investors in the IPO.
About 40% of the stock offered in the IPO was allocated to shareholders who had sold their businesses into the Steadfast Network Brokers group and converted their equity into shares in the listed company.
Analysts view Austbrokers as Steadfast's closest comparable — Austbrokers' stock has been trading near record highs. A Select Equities director warned the main difference is that Steadfast has just rolled many businesses together via the IPO, so there is a short-term risk (the next 12 months) that some internal acquisitions may not perform as expected or individual operators could reduce growth momentum.
CEO Robert Kelly said the company was 'blown away by the fluidity of the stock and the degree of respect that the institutions are paying it,' reflecting his positive view of the IPO's market reception.
The ASX reported the Steadfast listing was the ninth this financial year and the 49th this calendar year, and it was the largest listing since Virtus Health's June IPO, which raised $339 million.
Call 1300 880 160
Start a chat
Schedule a call
