Finance company Latitude will be valued at around $3.8 billion if its float goes ahead as advertised but the big winner will of course be its boss of almost 12 months, Ahmed Fahour.
Fahour will get a discretionary bonus on listing of up to $22.5 million in stock on top of his pay, which is targeted at $4.8 million.
This includes base pay of $1.8 million, a short term bonus of the same amount and $1.2 million in long term bonuses.
Fahour has a no-interest loan of $17.5 million to finance his purchase of stock in the company which, according to Latitude’s prospectus, could be as many as 12.6 million shares worth $27 million at $2.15 a share.
No wonder Fahour is trying to dress the 90-year old finance company’s float as a “fintech”, which course suggests a higher multiple than the 12.4 to 13 times earnings on the deal, which will be sold at between $2 and $2.25 a share.
Fahour has a happy ability to line his pockets in each venture he takes on, from his transfer from Citibank to National Australia Bank with a huge sign-on bonus, to walking away from Australia Post with a $10.8 million pay package.
Fahour justifies the fintech label because Latitude has no branches and is being listed, in the words of Goldman Sachs, as a digital payments, instalments and lending business that operates a multichannel customer origination platform.
In his almost 12 months running the finance shop Fahour has been busily branding its products with a common “Latitude “ label rather than the disparate product mix it had before.
Latitude has a personal loan book totalling $1.6 billion, with $700 million in new loans in the last 12 months. This is claimed to be ahead of both ANZ and NAB, with its market share increasing from nine to 13 per cent of the market.
Its Genoapay buy now, pay later product covering goods between $100 and $300 is growing quickly in New Zealand and is being rolled out in Australia with Harvey Norman an early customer.
Others like JB Hi-Fi will follow.
The company also promotes its technology on clearing loans, with a decision in 10 minutes and the cash in 24 hours.
At a time when personal finance is running hot Fahour is doing what he does best - marketing the business and filling his own wallet.
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