Steadfast seeks $334m
Insurance broker Steadfast Group is seeking to raise $334 million from investors before its float next month, with its network of brokers set to hold about 40 per cent of stock.
The final prospectus, filed on Thursday night, shows Steadfast will issue 278 million to 334 million new shares priced between $1 and $1.20.
The company, which is taking equity stakes in 62 broking businesses before its listing, is also issuing 135.3 million shares to its network as payment and 65.2 million as part of a pre-float restructure of its business.
All up, chairman Frank O'Halloran said, the brokers would hold 37 to 41 per cent of stock, and directors would hold 3 per cent.
The brokers join forces to negotiate insurance rates with underwriters then sell the policies.
The brokers' stock will be held in escrow until September 2014. The prospectus says the arrangements may limit the price of the shares, which could also be dragged down if there was any sell-down once the shares were no longer in escrow.