Reports that planned IPO will value company at $750m
Columbus Capital – the Australian non-bank behind the Homestar Finance lending brand is reportedly in negotiations with JP Morgan and Bank of America to prepare the company for an IPO valuing it at $750m, according to reports from AFR’s well-connected Street Talk.
Columbus trades through its Homestar Finance and Origin MMS brands – Homestar has been providing home loans since 2004, while the Origin MMS business was previously ANZ’s wholesale distribution arm, and is Australia’s oldest non-bank brand.
The news follows Liberty Financial’s successful listing deal that valued the company at nearly $2bn, and reports that private equity backed Pepper has resurrected its plans from earlier this year and is aiming for a first half 2021 listing.
Columbus has been expanding rapidly – it grew its mortgage business by nearly 50% in 2019 to turn a $20m profit after tax.
Homestar Finance, its public facing home loans brand, made headlines just a few weeks ago when it announced that its ongoing variable rate would be just 1.79% - claiming an Australian first. To get that rate, borrowers needed to have a 40% deposit and a loan of less than $850,000.
Columbus Capital fast facts:
Residential Mortgage Book: $6.7bn
2019 Revenue: $188m
Established: 2006
Acquired OriginMMS from ANZ for $2.3bn in 2012
Purchased direct to consumer lender Homestar in 2018
Founders/Shareholders:
Andrew Chepul, CEO - previously treasurer at FirstMac
Ilias Pavlopoulos, COO – previously card strategy and business development, CBA
Brands:
Homestar Finance
Origin MMS
