Non-bank lender Pepper Group is working on an ASX listing which would value the business as high as $1 billion.
Industry sources say investors will be surprised at the value of Pepper’s business in Europe where it manages about $23.5 billion in assets.
In Australia, Pepper manages about $4.9 billion in funds.
Annual revenue of the group is about $330 million.
Goldman Sachs and Macquarie Capital have been appointed to work on the float which would take place in the second half of this year.
The Pepper Group had no comment today.
Pepper is a leading non-bank lender specialising in home loans for those who fall outside the credit criteria of major banks.
The group also does a lot of service work for the major banks.
Financial stocks are at record highs on the ASX with the Commonwealth Bank trading at $95.73, with many forecasting it will hit $100.
The Australian market absorbed a bumper crop of local IPOs in 2014, raising $26 billion in equity through 74 floats, and returning an average of 17% to those lucky enough to be allocated shares.
According to analysis by Deloitte, in its Surf’s up: 2015 IPO report, last year’s value total exceeded capital raisings for the previous three years combined.
Co-group CEO Mike Culhane founded Pepper in 2001. The other co-group CEO is Patrick Tuttle, a former CFO for Macquarie Group.