by Jenny Ruth
But already the float has run into trouble: while Mortgage Choice had hoped to sell the institutional tranche of its offer, 37.8 million existing shares, at $1.20, it had to scale that back to $1.05.
The company says that 15 institutions had bought the shares on offer, although it refuses to name them. A further 5.5 million new shares are being offered to employees and franchisees. Any shortfall from this part of the offer will be offered first to employees and franchisees and then to institutions.
The float, which has been underwritten by UBS, will see Mortgage Choice’s founders Rod and Peter Higgins retain 44% of the company. They have agreed not to sell any of their remaining shares until after the company reports its 2005 results.
The Australian company has nearly 400 franchisees and plans to open up to 60 more outlets soon. Its loan book has climbed from A$9.6 billion in 2002 to A$15 billion at the end of December. It is predicting a 14% drop in loan approvals in 2004/05, although it expects its own loan book to climb to A$20 billion.
It is forecasting that industry growth will slow to 12% from 19% in 2003/04.
The Mike Pero shares haven’t fared very well since the company listed in May. The shares were issued at $1 each but were trading at 88 cents on Thursday.
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