Managed Accounts Holdings Limited, which owns managed discretionary account specialist, managedaccounts.com.au, has successfully registered its prospectus with the Australian Securities and Investments Commission for an IPO to list on the Australian Securities Exchange.
The IPO is expected to raise between $2 million and $5 million based on an offer of up to 25 million shares at a price of $0.20 each.
The Company is expected to commence trading on Wednesday, May 15 with a market capitalisation of approximately $29 million if the maximum subscription is reached.
Listed investment company Argo Investments Limited (ASX: ARG) will remain a key shareholder in managedaccounts.com.au. The Company’s management team and directors, which include executive chairman Don Sharp, non-executive directors Colin Scully and Paul Collins, and CEO David Heather will collectively hold over 50 per cent of the issued shares if the maximum subscription is reached.
Sharp and Scully co-founded Bridges Financial Services, now a fully-owned subsidiary of IOOF Holdings. Collins co-founded stockbroking and financial services company, IWL Limited, which was sold to the Commonwealth Bank of Australia in 2007.These businesses were sold for in excess of $500m.
managedaccounts.com.au Executive Chairman Don Sharp said the adoption of managed accounts in Australia was expected to grow exponentially as it had in countries like the United States.
He said the growth of discretionary managed accounts would continue to be supported by the burgeoning self-managed superannuation fund (SMSF) market, with more and more investors demanding greater flexibility and control of their assets.
SMSFs represent approximately 70 per cent of the Company’s assets under administration. “In a relatively short period of time, managedaccounts.com.au has become one of the largest independent managed account service providers in Australia with 21 major clients and over $900 million in funds under administration,” Sharp said.
“The company has a number of distinct advantages including integrated technology, operations and compliance; competitive pricing; and significant exposure to the burgeoning self-managed superannuation market’’.
managedaccounts.com.au leverages the technology platform of one of the world’s largest institutional managed accounts providers SS&C Technologies. As a result, the annual expenditure that managedaccounts.com.au spends on IT is only a fraction of what other managed account administrators/providers spend on building and maintaining their own systems, which bodes well with current B2B clients and long list of prospective clients.
Globally, some 6,900 financial services organisations manage and account for their investments using SS&C’s products and services. These clients in the aggregate manage over $26 trillion in assets.
According to the Company’s prospectus, it forecasts a $324,000 profit before tax for the FY2014, from revenue of $3.37 million. It has also forecasted a $1,067,000 profit before tax in the FY2015, from revenue of $4.95 million.
The board of managedaccounts.com.au has declared its intention to pay, on a quarterly basis, an unfranked dividend of $0.08 cents per share for FY2015. This will provide shareholders with a 4 per cent yield on the offer price of $0.20 cents per share.
Details of the offer are contained in the prospectus which can be downloaded from the website of the Company at www.managedaccounts.com.au.