Mortgage origination company Finbond debuts on AltX

Mortgage origination company, Finbond Property Finance, listed on the JSEs AltX on 15 June 2007.

The share opened at 225 cents a share, traded to a high of 230 cents before closing the days trading at 225 cents. In all a total of 139 761 shares were traded representing a total value of R316 000.

Finbond raised a total of R180m in a pre-listing offer of 82,5m shares to institutional investors for subscription and sale at between 200 cents and 250 cents a share. All the transactions were concluded at 225 cents a share and both offers were substantially oversubscribed. 

Finbond, is the countrys fifth largest mortgage originator, and the first in the country to be listed on the stock ex change.

This listing gives investors an opportunity to gain access to the dynamic mortgage origination industry which is growing at around 30% a year and is now responsible for generating between 60% and 70% of all mortgage advances in SA.

The company turned in an after tax profit of R22,6m for the year ended February 2007 and is projecting that to rise to R58,8m in 2008 and R84,8m in 2009 mainly as a consequence of its recent acquisitions and the increased opportunities for inward business referral.