# LFS - Latitude Financial Services Group



## System (8 October 2019)

Latitude is a leading digital payments, instalments and lending platform, with 2.6 million customer accounts and more than 1,950 merchant partners across Australia and New Zealand.

Latitude provides innovative products and services that support the needs of customers and merchants and other commercial partners, leveraging its technology and database of customer information.

Latitude offers its customers in Australia and New Zealand payment and instalments products ('L-Pay') and lending products ('L-Money'). Its Business-to-Business-to-Consumer ('B2B2C') and Direct-to-Consumer ('D2C') distribution model enables customers to transact through Latitude's established network of commercial partners, as well as with Latitude directly, online and by phone.

Headquartered in Melbourne, Australia, Latitude employs approximately 1,600 FTE staff.

It is anticipated that LFS will list on the ASX during October 2019.

https://www.latitudefinancial.com.au


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## bigdog (16 October 2019)

https://www.theage.com.au/business/...pulls-plug-on-3-2b-float-20191015-p530tr.html

*Ahmed Fahour's Latitude pulls plug on $3.2b float*
*By Colin Kruger and Clancy Yeates*
October 15, 2019 — 8.06pm

Ahmed Fahour's Latitude Financial Group has failed in its second attempt at a public listing despite its share offering being significantly discounted this week.

The bookbuild for the Latitude initial public offering (IPO), the biggest proposed sharemarket float of the year, was due to close at 5pm on Tuesday.

Sources close to the deal, who cannot talk officially due to confidentiality around the transaction, confirmed late on Tuesday that the IPO had been called off.

“They raised the money, but there was a concern over quality in a small portion of the bookbuild," said one source.

This prompted concern about after-market performance of the shares if the planned float went ahead on Friday.

A fund manager, who did not want to be named because discussions of the planned IPO were still confidential, said he had been told the float had been pulled, though this had not come from the bankers on the deal.

"There just wasn't enough demand even though it was covered at the bottom end of the range," the fund manager said.

"There probably wasn't enough to ensure a suitable after-market."

A spokesman for Latitude's current owners declined to comment on Tuesday evening.

As recently as midday on Tuesday, the lead managers for the IPO, Goldman Sachs, Macquarie Group and UBS, sent a message to brokers expressing their confidence that buyers had been found for the billion dollars worth of shares on offer to investors valuing the consumer finance group at $3.2 billion.

It has been a rough ride for the consumer finance group which was sold by its former parent GE in 2015 to private equity firms KKR, Varde Partners, and Deutsche Bank. The three investors would have still owned more than half of the Latitude business after the float.

During the past few days there have been several analysts talking down the float opportunity. On Monday James Greenhalgh from Intelligent Investors called it "one of the most unappealing large IPOs we have ever seen".

Latitude Group hired former Australia Post chief executive Mr Fahour last year after its attempt at a $5 billion IPO failed.

The company announced its latest attempt to float last month with a share price of up to $2.25, which would have valued the company at up to $4 billion.

On Friday, the float's managers confirmed an offer price of $2 a share. On Monday this was discounted to $1.78.

Latitude, formerly known as GE Money, makes about half its operating income from instalment loans, with most of the remainder coming from personal loans, auto loans and credit cards. Its business includes Myer credit cards and point of sale finance at stores such as Harvey Norman, Apple and JB Hi-Fi.

In other news, Latitude continued its drip feed of merchant signings for its new buy-now, pay-later product announcing on Tuesday that Virgin Australia will be using the new service next year.

It was hoped that its aggressive push into this Afterpay-dominated market would help boost the company's valuation.

Virgin customers will be able to use the interest-free instalment payment service, LatitudePay, for purchases of up to $1000 in the first half of 2020. A service for purchases of more than $1000 will be available later next year.

"This partnership will provide greater payments flexibility for Virgin Australia's customers, who now have the choice to 'fly now, pay later' when they book a domestic or international flight," said Mr Fahour.


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## galumay (16 October 2019)

Australia's version of WeWork!


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## So_Cynical (16 October 2019)

galumay said:


> Australia's version of WeWork!




That's actually called Wotso and wil be spun out of BWF sometime over the next few months...but yeah i know what you mean, a dodgy float is a dodgy float, fecking private equity.


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## System (14 April 2021)

It is anticipated that LFS will list on the ASX on 20 April 2021.


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## Dona Ferentes (14 April 2021)

System said:


> It is anticipated that LFS will list on the ASX on 20 April 2021.



third time lucky ??

_The sale of 10 per cent of Latitude Financial Group to Japan’s Shinsei Bank paves the way for the country’s largest non-bank consumer finance business to list on the ASX without having to sell a single share.

Now LFS will have 4 shareholders: Shinsei, KKR, Deutsche Bank and Varde Partners.  The $3 billion company now has *28 per cent of its share register classified as “free float”.* Under ASX rules, a company with a free float of more than 20 per cent can list without the need to sell stock to new investors. Latitude had an 18 per cent free float before the Shinsei deal thanks to institutional investors switching their stock from a private equity fund to direct ownership.

This means it can go ahead with an initial public offering by way of a compliance listing and avoid the problem it faced in 2019 when an IPO was pulled because local institutions would not stump up $1.2 billion.

Latitude makes about $1 billion in operating income a year, more than $200 million in annual cash profit and has north of $8 billion in loan receivables_.


*Listing date*20 April 2021 #*Company contact details*https://www.latitudefinancial.com.au/
Ph: (03) 9058 1564*Principal Activities*Consumer finance – instalments and lending*GICS industry group*TBA*Issue Price*$2.60*Issue Type*Ordinary Fully Paid Shares*Security code*LFS*Capital to be Raised*$200,000,000*Expected offer close date*16 April 2021*Underwriter*Fully underwritten. Credit Suisse (Australia) Limited, Jefferies (Australia) Pty Ltd and Merrill Lynch Equities (Australia) Limited (Joint Underwriters and Lead Managers)


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## Dona Ferentes (20 April 2021)

and open ... only stags were the existing holders: Close at day's low $2.70

_IPO priced at $2.60: today's action, 3 minute intervals_


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## peter2 (20 April 2021)

Pleased to see the CEO say that they're in the credit business. Politicians need to wake up and classify all BNPL companies as credit providers. Then, see that the current credit laws are applied. 

Another stock to add to the BNPL watch list.


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## Dona Ferentes (26 April 2021)

bigdog said:


> *Ahmed Fahour's Latitude pulls plug on $3.2b float*
> October 15, 2019 —
> Ahmed Fahour's Latitude Financial Group has failed in its *second *attempt at a public listing despite its share offering being significantly discounted this week. A fund manager said:
> "_There just wasn't enough demand even though it was covered at the bottom end of the range," . "There probably wasn't enough to ensure a suitable after-market._"



Third time unlucky. like the quondam attempts.

after 5 days, there has been minimal interest. Now sub $2.60


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## frugal.rock (26 April 2021)

peter2 said:


> Politicians need to wake up and classify all BNPL companies as credit providers. Then, see that the current credit laws are applied.



I recently noted a head from the Commonwealth Bank calling for the same thing.
Timely, with them entering the market themselves.
I know Z1P do a credit check before approval, however, the biggest loser could be Afterpay, as to my knowledge, they don't apply a credit check before onboarding.


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## Dona Ferentes (20 June 2022)

peter2 said:


> Another stock to add to the BNPL watch list.




HUM dropped nearly 40% to 43c on Friday. Back above 50c today, but only just.




> _In light of the current major disruption in financial markets, Latitude Group Holdings Limited (ASX: LFS) and Humm Group Limited (ASX:HUM) have mutually agreed to terminate the proposed sale of humm consumer finance (HCF) to Latitude. _




and Latitude LFS not doing too well, either, falling because their growth pathway could be crimped. despite saying 
" _BNPL represents less than 1% of Latitude’s revenue and receivables. Latitude Group is experiencing good organic volume growth, is profitable and well capitalised to execute on a number of opportunities ahead._  " ... but that hasn't helped. Now at a low of $1.25.


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