Mortgage Choice Australia to list

The Australian firm, which is separate from the New Zealand company of the same name, plans to list on August 10 after raising nearly A$45.5 million ($50 million) from selling 37% of the company.

But already the float has run into trouble: while Mortgage Choice had hoped to sell the institutional tranche of its offer, 37.8 million existing shares, at $1.20, it had to scale that back to $1.05.

The company says that 15 institutions had bought the shares on offer, although it refuses to name them. A further 5.5 million new shares are being offered to employees and franchisees. Any shortfall from this part of the offer will be offered first to employees and franchisees and then to institutions.

The float, which has been underwritten by UBS, will see Mortgage Choice’s founders Rod and Peter Higgins retain 44% of the company. They have agreed not to sell any of their remaining shares until after the company reports its 2005 results.

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