Fintech Moneylender Delays Float As ASX Raises Concerns
Fintech lending outfit Prospa – which had launched a $146 million stockmarket float plan – yesterday missed its date with destiny on the ASX, when the stock exchange persuaded it to pull plans to begin listing from yesterday.
The ASC had raised concerns about the online lender’s loan terms, following a current industry-wide review of small business lending, according to reports.
Since its marketplace launch in 2012, Prospa is said to have lent more than $500 million to Australian small businesses and has been looking to use the IPO to lend more.
But according to a number of reports there have been ongoing concerns about the hefty interest rates it charges small businesses and its disclosure practices.
Prospa’s prospectus says it provides loans of up to $250,000, with no security required for loans up to $100,000. The average annual interest rate across its portfolio is estimated at 41.3 percent.
Prospa late yesterday was saying it now expects to list on Friday. When it doe does list it is expected to have a market value of as much as $576 million.