Judo Bank Sees Strong Investor Interest for $1.7B Sydney IPO

Judo Bank, an Australian challenger bank centered on providing loans to small and medium-sized enterprises, is aiming to raise around A$653 million, or about $477 million, in its initial public offering (IPO) in Sydney, according to a Bloomberg report on Sunday (Oct. 10). The company expects a listing of A$2.3 billion (about $1.7 billion).

Documents viewed by the news outlet reveal that Judo Bank is selling 311.1 million shares at $2.10 per share, and the company has already secured commitments from investors for the purchase of A$515 worth of shares (about $376 million), leaving A$135 million worth up for grabs.

On Tuesday (Oct. 5), it was reported that IPOs are being put on hold as an unstable stock market leads to wariness among investors. An over-saturation of deals is another factor in at least eight European companies pulling back their IPOs.

Some companies listing their IPOs are doing so at hefty decreases in valuation, as PYMNTS has reported. KakaoBank Corp. in July had announced it would raise $2.2 billion after pricing its IPO at the top of the marketed range. However, by the end of August, the company had announced it would reduce its valuation.

See also: Stock Market Instability Leads to Shelved IPOs

On the flip side, a PYMNTS report on Friday (Oct. 8) noted that over the previous several days, the number of payment-related announcements increased to 32 listings, the banking sector stood at 54 and firms geared to improving workflows stood at 42.

Related news: FinTech-Centered SPACs, Platform IPOs Dominate October’s First Week

For its part, Judo Bank attained unicorn status in May of 2020, after the challenger bank received $148 million in a Series C funding round from investors, 10 months after it was able to secure $261.6 million in a Series B round, and only a few weeks since it was able to get $322 million in government loan funding, provided for businesses to keep afloat during the coronavirus pandemic.

Read more: SMB-Focused Lender Judo Bank Attains Unicorn Status