Kina Securities initial public offering (IPO) to help to set up Kina Bank

Leading PNG Financial institution, Kina Securities Limited (KSL) has listed on the Australia Securities Exchange (ASX) and the Port Moresby Stock Exchange (POMSoX) following the successful completion of initial public offering (IPO).

Under the IPO, approximately 97 million fully paid ordinary shares were offered at K2.08/ A$1.00. KSL will have a market capitalization of approximately K341 million/ A$164 million on listing.

KSL was officially listed on the stock market at 11am today in Port Moresby and Sydney.

On the POMSoX KSL stock was offering at K2.03 and in few minutes the offering rose to K2.50.

The IPO was conducted in part to raise capital to fund the acquisition of Maybank PNG, which is PNG’s fourth largest bank offering a wide range of consumer and corporate banking and finance products.

 Funds raised through the IPO will also facilitate the partial sell-down of shares held by Kina Securities major shareholder, in line with prudent guidelines, and be applied to future working capital requirements and funding growth initiatives.

Kind Security CEO Syd Yates said, “It is satisfying to reach the end of an IPO with such a quality register of investors. “

“There were strong demands from tier 1 financial institution in the IPO, and the book was multiple times covered. Leading financial institutions from Australia, New Zealand, PNG and other countries in the Asia Pacific region have participated in the IPO.”

“This strong demand reflects investors understanding of the quality of our business, board and management team and the strong economic growth in PNG.”

“I believe investors also have been attracted by Kina Securities strong growth potential that will follow the acquisition of Maybank PNG. This acquisition provides Kina with the opportunity to offer new financial products, grow its client base and to cross-sell products,” said Yates.   

Following the acquisition, Kina Securities will offer a diverse suite of products and services to new and existing clients, including retail banking, deposit taking, trade financing, lending, funds management, fund administration, custodial services and stockbroking.

The agreement to acquire Maybank PNG was executed in May 2015 and is anticipated to be completed in the coming months.   

The company is also the largest licensed funds management company in PNG with K5.2 billion under management and is one of the PNG’s largest fund administrators with K4.7 billion under administration for more than 155,000 members. 

Author: 
Charles Yapumi