WAM Global Limited

Targeting Capital Growth and Stream of Fully Franked Dividend from Proceed: The WAM Global Limited (Proposed ASX Code: WGB) is an investment company and it has issued an IPO prospectus to raise up to $330 million under the Offer, with the ability to accept an additional $220 million in oversubscriptions. The Company will be listed on the ASX under the code WGB. The issue price under the Offer is $2.20 per share. The money raised under the Offer will be used by the Company for investments consistent with the investment strategy and objectives i.e., to provide capital growth over the medium-to-long term, deliver a stream of fully franked dividends, and preserve capital. Apart from this, the group aims to provide shareholders of the listed investment company (LIC) with strong risk-adjusted returns derived from a diversified portfolio of undervalued international growth companies using Wilson Asset Management’s proven investment strategy. The Investment Manager will actively manage the Portfolio, using Wilson Asset Management’s research-driven and market-driven investment processes. The research-driven investment process involves extensive research, focusing on free cash flow, return on equity and the quality of the potential investee company. The Company will invest only when the Investment Manager can identify appropriate investment opportunities otherwise the Company will hold the cash when opportunities are not identified by the Investment Manager. There is no limitation to the level of cash which can be held in the Portfolio. Opening date of the Offer was 2^nd May 2018 and the closing date is 8^th June 2018. WAM Global shares are expected to list on ASX market on June 22, 2018. One will have to make a minimum Investment of $16,500,000(7,500,000shares) and the offer is not underwritten. While WAM funds have yielded good returns over the past and investors expect a similar return trajectory for WGB; however, risks related to exposure to global platform and higher management fees etc. need to be evaluated before making an investment.


Key Offer Statistics (Source: Company Reports)
 

Prospa Group Limited

Solid Track Record of Growth: Prospa Group Limited (Proposed ASX Code: PGL) is a financial technology company and has lent over $500 million since 2012. It has served over 12,000 unique customers and maintained 97 per cent customer satisfaction rate during the same period. The company lodged the prospectus with the Australian Securities and Investment Commission (ASIC) for an offer of up to 146.5 Mn ordinary fully paid shares at an offer price of $3.64 each to raise up to $146,500,000. The objective of the IPO is to provide cash to fund its investment in the equity portion of the loan book in the warehouse securitisation and ABS Issuance funding platform, and for working capital; enable the scaling of its existing business model by investing in technology development and talent; provide funds to invest in new geographies and product categories, provide access to listed capital markets for future growth, and allow certain existing shareholders an opportunity to realise all or part of their investment in the Company. On the financial front, the company delivered total revenue CAGR of 130% from FY15 to FY17, from $10.5 Mn in FY15 to $55.8 Mn in FY17. This was mainly driven by a loan origination CAGR of 127% over the same period. We expect this strong total revenue growth to continue, with forecast revenue for the 12-month period ending 31 December 2018 of $116.2 Mn. However, statutory Net profit after tax (NPAT) is expected to record a loss of $1.8 Mn this year due to the listing costs, but may show profitability in 2019 at the back of growth in revenue and loan originations.The closing date of the retail Offer was 4 June 2018 and it is expected that the shares will start trading soon. Given the historical performance, this one might work around a key differentiator to mark a good foothold specially in terms of online lending.
 

Strong Track Record (Source: Company Reports)
 

1414 Degrees Limited

Fund Raised to Build and Install its First TESS Modules at Commercial Site: This energy storage company was incorporated on 11 August 2009 as Gnomon Technologies Pty Ltd and changed its name to Latent Heat Storage Pty Ltd on 2 June 2014. On 8 December 2016, it converted to a public company and changed its name to 1414 Degrees Limited. The Company designs, develops and manufactures Thermal Energy Storage Systems (TESS) that utilize the very high energy density of molten silicon to maximize efficiency. The company lodged a prospectus with ASIC on 28 May 2018 to raise $50,000,000 at $0.35 per share. The Offers made under the prospectus and the issue of shares pursuant to the prospectus are subject to and conditional upon the company achieving the Minimum Subscription of 85,714,286 Shares to raise at least $30,000,000. The Company will be listed on the ASX under the code 14D. The purpose of this Offer is to facilitate an application by the Company for admission to the Official List and to raise capital sufficient to position the Company to achieve the objectives set out. Most notably, the Company intends to use funds raised to build and install the first TESS modules at commercial pilot sites in order to qualify its products for long-term project financing by demonstrating product reliability and efficacy.Opening date of the Offer was 28 May 2018 and the closing date is 15 June 2018. It is expected to list on ASX market on July 03, 2018 and the offer is not underwritten. Since, the Company is at an early stage in its commercialization journey that’s why the company may not provide investors with a meaningful basis to assess the business, financial position and prospects of the Company so any investment should be considered high risk and speculative. Moreover, the company does not expect to pay dividends in the near future as its focus will primarily be on using cash reserves to grow and develop the 1414 Degrees’ business.


IPO Schedule (Source: Company Reports)

 
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