Judo Bank locks in $650m IPO at 1.7 times book value

Construction of the book was scheduled for Wednesday, sources said, and the float would be subscribed shortly after. Barring disaster, it would be listed in early November.

The core offerings were a strong show of support for the Australian bank, which was founded in 2016 and lends to small and medium-sized businesses.

The company had a loan portfolio of $3.5 billion as of June 30, according to marketing materials in front of potential investors, and expects to make a profit of $5.2 million in fiscal 2022.

This is another strong signal for the Australian IPO market at a time when seven listings of over $1 billion line up for a float.

The first of the big listings, global equity investor GQG Partners, secured its $1.2 billion IPO and $6 billion free float last week. Judo Bank is second, while others include SG Lottery, Vulcan Steel, SiteMinder, Ventia and ComfortDelGro Australia. They are all scheduled to launch investors in the coming month.

Judo Bank’s float is a landmark occasion for the group’s founders, including former NAB bankers Joseph Healy (still CEO) and David Hornery, who argued that their customer-centric and differentiated approach would resonate with both customers and investors.

Along the way, the group has raised over $1 billion and brought in outside investors including Bain Capital Credit, Myer Family Investments, Abu Dhabi Capital Group and Ironbridge. It has also been able to attract deposits, primarily by going directly to wealthy Australian retailers.

Goldman Sachs, Citi, Barrenjoey and Credit Suisse are underwriters and lead managers of Judo Bank.

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