Question 1: What do you think of the Latitude Financial IPO?
Answer: This is the second time the private equity owners of Latitude Financial have attempted to IPO the business so I guess I am somewhat underwhelmed by the prospect of investing. The business (formerly the GE Finance business) is interesting, but hardly compelling. The description of the business as a “digital payments, instalments and lending platform” is interesting – I guess this is what they mean by “Latitude 2.0”.
Pricing is not aggressive (indicative 12.4x to 13.9x 12 month earnings to 30/6/20) and retail shareholders have comfort in that institutional investors will set the price via a book-build. The first dividend (estimated to be 5 cents) won’t be paid until October 2020.