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Highlights
- The Propel Holdings IPO depends on approval by the Toronto Stock Exchange.
- Propel Holdings is hoping to list its common shares on the Toronto Stock Exchange (TSX), which is the main stock exchange in Canada.
- Propel Holdings has partnered with three banks, and it receives seven million unique applications per year.
Propel Holdings Inc., the Toronto-based financial technology (fintech) company has filed for a C$ 60 million initial public offering on the country's main stock exchange. According to the prospectus filed with the regulatory authorities, Propel could price its common shares between C$ 9.25 to C$ 9.75 apiece.
The Toronto-based company is a subprime lender, which means that it lends money to underserved customers by providing them fast and transparent access to credit services. Propel Holdings said in the prospectus that it seeks to enable 60 million underserved American customers to access credit products as mainstream credit providers don't offer them their services.
Propel Holdings IPO: Key details
The fintech company is hoping to list its common shares on the Toronto Stock Exchange (TSX), which is the main stock exchange in Canada. Although Propel Holdings has mentioned raising C$ 60 million in the prospectus, it could raise C$ 69 million if an over-allotment option is exercised in full.
The stock symbol for Propel Holdings would be 'PRL' and the underwriting responsibility for the IPO would be taken by Canaccord Genuity Corp. and Scotia Capital Inc. as joint bookrunners.
The listing of common shares would depend on the approval by the TSX and Proper Holdings fulfilling all the initial listing requirements and conditions of the TSX. At the time of writing, the TSX had not conditionally approved the listing.
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If the IPO happens, retail investors will most likely get an option of buying the pre-IPO shares. Trading accounts of brokerage companies and stockbrokers offer people to book the pre-IPO shares in advance and they are generally allotted on a random lottery basis.
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Bottom line
Established in 2011, Propel Holdings has grown popular among underserved customers. As of June 30, the company had facilitated over 758,000 loans and lines of credit. US$ 515 million has been advanced to nearly 492,000 unique customers.
In the fiscal year 2020, the revenue, operating income and net income were US$ 73.5 million, US$ 17.3 million, and US$ 7.3 million. In 2019, the figures stood at US$ 68 million, US$ 8.1 million, and US$ 2 million.
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According to the prospectus, 88 per cent of the loan applications are auto-decisioned and and most of them under 10 seconds. Propel Holdings has partnered with three banks, and it receives seven million unique applications per year.
