The initial public offering pipeline may be quiet for the time being, as coronavirus fears continue to see most deals on hold, but one group suggested as a party eager to embark on a float should the market improve is Findex.
The financial advisory and accounting services company is run and co-founded by Spiro Paule, who is believed to be eager to secure more funds to take on wealth managers Netwealth and Hub Financial.
Findex had been keen to build up a plan to create a fee-free platform for financial products, although there is a view that this could be a tough assignment for the company.
It is estimated that the company could be worth about $200m.
Findex in 2015 bought the Australian and New Zealand business of accounting services business Crowe Horwath International.
Private equity giant Kohlberg Kravis Roberts has been an investor in the business, but was making efforts to sell the business about two years ago.
In 2014, Findex acquired Centric Wealth, which was previously run by former Wallaby captain Phil Kearns.
Private equity firm Champ, now called CPE Capital, reaped about $130m from the sale.
Findex describes itself as one of Australasia’s largest, fully integrated advisory businesses, providing tailored, integrated solutions for people, families and large and small businesses.
It has 110 offices throughout Australia and New Zealand.
Should an IPO become an impossible feat, perhaps a sale could be on the agenda, with many in the industry suggesting that consolidation needs to occur.
Talk about Findex as an initial public offering comes as the market for floats currently remains at a standstill.
This is while challenges exist containing the coronavirus and many company executives remain banned from non-essential business travel.
Embarking on a global roadshow without passing through Asia as seen as pointless, given investors in the region are critical for the success of most deals.
Some are even betting that a listing of Pepper Australia will be placed on the back burner, even though advisers continue to work on a potential listing for May.
The thinking is that the group would likely achieve a price equating to about 10 times its earnings, rather than the 13
times the company had been hoping for.
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