Plenti, a consumer lending platform (previously known as RateSetter Australia), has announced that it will carry out an initial public offering (IPO), in order to secure AUD 55 million in capital.
Plenti’s management noted that they’ll offer 33.1 million shares at the rate of $1.66 per share. This will reportedly account for 19.6% of total ordinary shares at the time of listing.
Plenti was launched in Australia back in 2014 as a peer to peer (P2P) lending platform. The company continues to offer P2P loans, but it has also expanded its operations to include certain business activities with local banks. It also deals with superannuation funds and works with several institutional investors. Plenti has worked cooperatively with Australia’s Clean Energy Finance Corporation as well.
The firm has set up a warehouse funding facility with a major Australian bank serving as an investor. The company has been selling personal loans, car loans and renewable energy loans so that borrowers can acquire solar panels and household batteries. Plenti’s interest rates on its products have been risk-adjusted, the company claims.
As first reported by Banking Day, Plenti has originated $870 million worth of loans. The firm currently has about $400 million in outstanding loans. Its originations grew 34% to $318 million during the past year. Its loan book has increased at a compound annual growth rate (CAGR) of 39% during the last three years.
The Australian firm was not part of that deal. However, shareholders of RateSetter UK currently hold 13% of Plenti Group shares. The shares are currently with a nominee firm, with certain holders or beneficiaries subject to escrow.
Plenti’s overall revenue reportedly increased from $16.1 million in 2017-18 to $28.8 million during the 2018-19 financial year (FY) and then grew significantly more to $41.5 million for the past year ending in June 2020.
The loan impairment costs were estimated to be around $10.7 million for the company’s recent FY, which is up considerably from $7.7 million recorded in FY 2018-19. The P2P lender’s credit losses were about 1.8% of total loans financed since its launch.
Plenti recorded a $16.4 million loss for the year ending in June 2020. It also reported a loss of $14.2 million for the previous FY.