September 20, 2019 / 9:42 AM / 2 months ago

KKR, Deutsche Bank, plan $2.5 billion listing of Australian lender: sources

SYDNEY (Reuters) - Latitude Financial’s second attempt to list its shares could be the largest share float in Australia for five years, with an expected value for the non-bank lender of about A$3.7 billion ($2.51 billion), two sources told Reuters.

One of the largest non-bank lenders in Australia and partly owned by U.S. private equity firm KKR & Co (KKR.N) and Deutsche Bank (DBKGn.DE), Latitude offers easy access home loans, credit cards, and personal loans with minimal paperwork.

It plans to lodge regulatory documentation for an initial public offering (IPO) with the corporate watchdog on Sept. 26, the sources said, declining to be identified because they are not authorized to speak to the media.

The IPO would be the biggest since the state-owned health insurer Medibank Private (MPL.AX) floated in November 2014 in an IPO worth A$5.67 billion, according to Refinitiv data. [reut.rs/2kK7SdD]

Latitude expects to report cash earnings of about A$288 million for the 12 months ending June 2020, the sources said, citing a Goldman Sachs report distributed to investors.

The sources added that the shares could be priced at about 13 times those earnings.

Representatives for Latitude were not available for immediate comment. The company is owned by Deutsche Bank, KKR and Värde Partners, an alternative asset manager, according to its website.

Last year, Latitude deferred a planned IPO due to market conditions and a change in its management while the country’s financial industry was also being scrutinized by a national misconduct inquiry.

Reporting by Paulina Duran in Sydney; editing by Jason Neely and Elaine Hardcastle

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