Private-equity firm KKR-backed Pepper Money plans to raise about A$500.1 million ($389.38 million) in Australia's biggest initial public offering of the year so far, valuing the non-banking lender at A$1.3 billion.
The listing plan comes as near-zero borrowing costs and rebounding investor confidence spark hopes of record deals in merger and acquisition activity this year, and after a four-fold jump in initial public offerings (IPOs) in the first quarter.
Pepper Money shares will be offered at a price of A$2.89 per share, the company said in its prospectus, adding that it expected to list on the Australian Stock Exchange on May 25.
Established in 2000, Pepper Money provides home loans and commercial real estate loans to customers in Australia and New Zealand. It has forecast its total assets under management to increase 11.5% to A$16.8 billion in 2021.
Pepper Money's offering is set to overtake the A$408.6 million one from Australian Clinical Labs, a pathology provider owned by domestic private-equity firm Crescent Capital Partners, announced in April.
Earlier in May, Reuters reported that KKR was also seeking to raise A$352 million in an IPO of its majority-owned Australia Venue Co, in a deal valuing the pub group at A$903 million.