OzForex in strong opening
Shares in OzForex hit the ground running on their first day on Friday, opening 30 per cent higher than its $2 initial public offering price at $2.59.
The stock finished the day up 28 per cent per cent at $2.56, taking its market capitalisation to $664.4 million.
"It's nice outcome for the people who have invested in us, and I'm pleased for the shareholders," OzForex chief executive Neil Helm said.
"But ultimately what I'm trying to do here is ensure that the value proposition that we offer our customers stays the same and we continue to do what we're doing."
The debut of OzForex was closely watched as a barometer for IPOs. So far this financial year 23 companies have listed on the ASX, but most of these have been small to mid-size stocks.
Looming at the end of this year is the $3 billion float of Nine Entertainment while mortgage insurer Genworth is expected to list its Australian arm next year.
OzForex founder Matthew Gilmour and early investor Gary Lord will each receive about $60 million from the sale. Macquarie is set to receive just over $90 million from the sale.
The IPO, which raised $439.4 million by the issues of 12 million new shares and the sale and transfer of 207.7 million existing shares, was heavily subscribed by institutional investors. OzForex's existing owners retained 20.3 million shares, or 8.5 per cent.
Mr Helm said OzForex's focus over the next 12 months was to strengthen its business in Australia as well as in Hong Kong, Singapore and the US.
For the last financial year, OzForex posted a net profit of $13.1 million.
The company's prospectus forecast a stronger year in financial 2014, with profits expected to rise to $18.6 million, excluding costs of listing.
Frequently Asked Questions about this Article…
OzForex had a strong sharemarket debut: its shares opened about 30% higher than the $2 IPO price at $2.59 and finished the day up about 28% at $2.56, giving the company a market capitalisation of around $664.4 million.
The IPO raised $439.4 million through the issue of 12 million new shares together with the sale and transfer of 207.7 million existing shares. After the deal, OzForex's existing owners retained 20.3 million shares, or about 8.5% of the company.
OzForex founder Matthew Gilmour and early investor Gary Lord were each set to receive roughly $60 million from the sale of shares. Macquarie was set to receive just over $90 million.
For the last financial year OzForex posted a net profit of $13.1 million. Its prospectus forecast a stronger financial 2014, with profits expected to rise to $18.6 million, excluding costs of listing.
CEO Neil Helm said the company’s focus over the next 12 months was to strengthen its business in Australia and expand in Hong Kong, Singapore and the United States.
The OzForex debut was closely watched as a barometer for IPO activity because, so far in the financial year, 23 companies had listed on the ASX—mostly small to mid‑size stocks—so investors were watching whether a larger, well‑subscribed IPO would signal broader appetite for new listings.
Yes. The article notes a looming $3 billion float for Nine Entertainment expected at the end of the year, and that mortgage insurer Genworth was expected to list its Australian arm next year.
Neil Helm said he was pleased for shareholders but emphasised that his priority was to ensure OzForex’s customer value proposition remained the same and that the business continued to deliver the services it offers customers.
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