Judo Bank IPO: How to invest in the S&P BBB-rated bank

Highlights

  • Australian neo lender Judo Bank aims to raise nearly AU$653 million, or about US$477 million, in its initial public offering (IPO) in Sydney.
  • The Australian challenger bank which provides loans to small- and medium-sized enterprises expects a listing of AU$2.3 billion (nearly US$1.7 billion).
  • The company’s listing is expected in early November this year.

Australian neo lender Judo Bank aims to raise nearly AU$653 million, or about US$477 million, in its initial public offering (IPO) in Sydney. The Australian challenger bank which provides loans to small- and medium-sized enterprises expects a listing of AU$2.3 billion (nearly US$1.7 billion). The company’s listing is expected in early November this year.

Judo Bank IPO : How to invest in the S&P BBB rated bank

The lender is selling 311.1 million shares for AU$2.1 per share via its IPO. The public offering comprises both new and existing shares.

The bank has already bagged commitments for shares worth AU$515 million (US$377.8 million). The remaining AU$135 million (US$99.04 million) is available for sale to institutional buyers.

Image Source: Judo Bank’s IPO prospectus

Goldman Sachs, Citi, Barrenjoey and Credit Suisse are Judo Bank’s underwriters and lead managers.

How offer proceeds will be used

Proceeds of the offer received by the company will be used primarily to support the regulatory

capital requirements associated with Judo’s projected growth.

Retail offer

The retail offer is likely to open at 9 AM (Sydney time) on Friday, 22 October 2021. It is expected to close at 5 PM (Sydney time) on Tuesday, 26 October 2021. The Institutional Offer was held ahead of the lodgement of the prospectus.

The retail offer consists of:

  • Broker firm offer
  • Priority offer
  • Employee discount offer
  • Employee gift offer

“Applicants under the Broker Firm Offer should contact their Broker to request a copy of this Prospectus and Broker Firm Offer Application Form, or download a copy at the company’s website. Your Broker will act as your agent, and it is your Broker’s responsibility to ensure that your Broker Firm Offer Application Form and Application Monies are received before 5:00 pm (Sydney time) on the Closing Date or any earlier closing date as determined by your Broker,” the prospectus read.

About Judo Bank

Judo Bank was founded in 2016. It offers lending services with a focus on small businesses. In May 2020, the bank closed an AU$230-million funding round. The company had an AU$3.5-billion loan book as of June 30. It expects to report AU$5.2 million profit in financial year 2022.

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