Cash America's online lending unit Enova Int'l withdraws IPO

Wed Jul 25, 2012 6:04pm EDT

* Had filed for IPO of up to $500 mln in September

* Cash America to post results on Thursday

July 25 (Reuters) - Cash America International Inc's online lending arm, Enova International, filed with regulators to withdraw its proposed initial public offering of up to $500 million.

Enova had filed for an IPO in September and the move was meant to help Cash America focus on growing its store-front pawn operations in the United States and Latin America.

Investor demand for financial IPOs has been weak over the past year. Community Choice Financial Inc, another lender which provides services to the underbanked through a network of 435 retail storefronts across 14 states, had pulled its IPO in May.

Cash America hoped to retain an 80 percent stake in Enova immediately following the IPO and eventually lower its stake to between 35 percent to 49 percent of Enova stock.

Enova, which has operations in the United States, Canada, the United Kingdom and Australia, processed about 4 million transactions in 2011. It reported net income of $37 million on revenue of $480.3 million for the year.

UBS Investment Bank, Barclays and Jefferies were the lead underwriters to the offering.

Shares of Cash America, which is expected to post second-quarter results on Thursday, closed at $45.12 on Wednesday on the New York Stock Exchange.