Steadfast seeks $334m
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.
Frequently Asked Questions about this Article…
Insurance broker Steadfast Group is seeking to raise about $334 million from investors ahead of its float next month, according to the company's final prospectus.
The prospectus shows Steadfast will issue between 278 million and 334 million new shares, with a proposed price range of $1.00 to $1.20 per share.
Yes. Steadfast is issuing 135.3 million shares to its broker network as payment and a further 65.2 million shares as part of a pre-float restructure, and it is taking equity stakes in 62 broking businesses before listing.
Chairman Frank O'Halloran said the broker network is expected to hold roughly 37% to 41% of Steadfast's stock after the float, while directors would hold about 3%.
The brokers' shares will be held in escrow until September 2014; the prospectus warns those escrow arrangements may limit the share price and that the price could be dragged down if there is a sell-down once shares leave escrow.
According to the article, the brokers join forces to negotiate insurance rates with underwriters and then sell the policies, which is part of how Steadfast and its network operate.
The prospectus flags that escrow limits and the possibility of a sell-down by broker shareholders once escrow ends could put downward pressure on the share price, so investors should consider this liquidity and price-risk factor.
Steadfast is taking equity stakes in 62 broking businesses prior to its listing, as disclosed in the final prospectus.
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