Tag Archives: New problems

Afterpay Australia explores global records as first-half sales double | Instant News


(Reuters) – Afterpay is exploring additional overseas listings amid growing US investor interest, Australia’s buy-now-pay-later said on Thursday after reporting first-half sales more than doubled.

Fintech Australia and its global competitors such as Klarna, Affirm and Sweden’s Zip Co have seen explosive growth since the pandemic locked in large parts of the world and made more people turn to online shopping.

Afterpay shares have gained more than 1,500% since March, establishing itself as the 12th most valuable company in Australia.

Afterpay also said it raised A $ 1.25 billion ($ 995 million) in convertible banknotes in a complex deal to buy Matrix Partners stock from its US business – which accounts for 43% of its sales. The United States is also a key growth market for the industry where it struggles with fast-growing Klarna.

Klarna, who is reported to be tapping into more private funding, posted his full-year results on Thursday evening.

Afterpay’s legal losses more than doubled to A $ 79.2 million as the strong growth of its UK business pushed the unit’s valuation higher and increased the value of put options held by other companies. Zip also posted a much bigger half-year loss after buying New York counterpart Quadpay.

While Afterpay’s gross transaction loss fell to 0.7% – indicating fewer customers skipping payments – margins also fell slightly to 2.2% from six months ago.

Transactions made through Afterpay totaled A $ 9.8 billion in the six months to December 31, double the A $ 4.8 billion processed last year, supported by strong holiday spending.

Active subscribers jumped 1.9 million to 13.1 million in the three months to December.

($ 1 = 1.2547 Australian dollars)

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Forward Samuel

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Bank of Queensland Australia increased with the purchase of ME Bank for $ 1.1 billion | Instant News


(Reuters) – Bank of Queensland Ltd will buy ME Bank, a digital lender owned by 26 industrial pension funds, for A $ 1.33 billion ($ 1.05 billion), the couple said on Monday, as tier lenders second moved away from the leadership of Australia’s “Big Four” Bank.

The deal will double the size of the regional bank’s Brisbane-based retail branch, take deposits to more than A $ 56 billion, and increase the division’s contribution to revenue to more than 50% from 36%, said the BoQ.

Even with the deal, the BoQ will still lag far behind the Big Four banks, which control about three-quarters of the lending market and have weathered the pandemic better than some other international banks.

The smallest of the four, the Australian and New Zealand Banking Group, has deposits of more than A $ 320 billion according to December data from the Australian Prudential Regulation Authority (APRA).

ME Bank chairman James Evans said the deal “represents a permanent change for the better in the Australian banking landscape.”

ME Bank pension fund backers, including the country’s biggest Australian Super, are backing the deal, he said.

The BoQ will fund the deal through an A $ 1.35 billion equity increase at A $ 7.35 per share.

“This is a defining acquisition in our ongoing BoQ transformation,” Chief Executive George Frazis said in a statement.

BoQ’s digital capabilities also benefit as large banks increase their digital presence or partner with fintech companies.

ME Bank, founded in 1994, posted a principal profit of A $ 123.9 million in fiscal 2020 with book loans of A $ 25.5 billion and deposits of approximately A $ 17.2 billion at the end of June.

In the attached trade update, the BoQ said it expects half-year cash profit growth from 8% to 10%, while loan delays have decreased.

($ 1 = 1.2702 Australian dollars)

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Peter Cooney and Richard Pullin

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Bank of Queensland Australia increased with the purchase of ME Bank for $ 1.1 billion | Instant News


(Reuters) – Bank of Queensland Ltd will buy ME Bank, a digital lender owned by 26 industrial pension funds, for A $ 1.33 billion ($ 1.05 billion), the couple said on Monday, as tier lenders second moved away from the leadership of Australia’s “Big Four” Bank.

The deal will double the size of the regional bank’s Brisbane-based retail branch, take deposits to more than A $ 56 billion, and increase the division’s contribution to revenue to more than 50% from 36%, said the BoQ.

Even with the deal, the BoQ will still lag far behind the Big Four banks, which control about three-quarters of the lending market and have weathered the pandemic better than some other international banks.

The smallest of the four, the Australian and New Zealand Banking Group, has deposits of more than A $ 320 billion according to December data from the Australian Prudential Regulation Authority (APRA).

ME Bank chairman James Evans said the deal “represents a permanent change for the better in the Australian banking landscape.”

ME Bank pension fund backers, including the country’s biggest Australian Super, are backing the deal, he said.

The BoQ will fund the deal through an A $ 1.35 billion equity increase at A $ 7.35 per share.

“This is a defining acquisition in our ongoing BoQ transformation,” Chief Executive George Frazis said in a statement.

BoQ’s digital capabilities also benefit as large banks increase their digital presence or partner with fintech companies.

ME Bank, founded in 1994, posted a principal profit of A $ 123.9 million in fiscal 2020 with book loans of A $ 25.5 billion and deposits of approximately A $ 17.2 billion at the end of June.

In the attached trade update, the BoQ said it expects half-year cash profit growth from 8% to 10%, while loan delays have decreased.

($ 1 = 1.2702 Australian dollars)

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Peter Cooney and Richard Pullin

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Brazilian waste processor Orizan completed a $ 103 million IPO | Instant News


SAO PAULO, February 11 (Reuters) – Brazil’s Orizan Valorizacao de Residuos SA, which converts waste to biofuel, has completed an initial public offering worth 554 million reais ($ 103.23 million), according to a securities filing on Thursday.

Orizan sets its offering price at 22 reais per share, compared to an indicative range of 20 reais to 27 reais per share.

The company earned 381.4 million reais, while shareholders sold 172.6 million reais in shares. ($ 1 = 5,3665 reais) (Reporting by Aluisio Alves; Editing by Sam Holmes)

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Brazilian maritime services company Oceanpact completed a $ 227 million IPO | Instant News


SAO PAULO, February 10 (Reuters) – Brazilian maritime service provider Oceanpact Servicos Maritimos has completed an initial public offering of 1.22 billion reais ($ 226.51 million), according to a securities filing on Wednesday.

Oceanpact is pricing the offer at 11.15 reais per share, below the lower limit of the indicative range to 13.85 reais per share.

The company raised 920 million reais in the offering, which aims to expand its fleet and purchase other equipment, while shareholders sell about 300 million reais of shares. ($ 1 = 5,3860 reais) (Report by Aluisio Alves Written by Jake Spring Editing by Chris Reese)

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