News in brief: Squirrel Group launches $5m private equity crowdfunding offer

by Maya Breen09 Mar 2016
Squirrel Group launches $5m private equity crowdfunding offer
Squirrel launched a $5 million equity crowdfunding private offer yesterday as it looks to list on the sharemarket in 2017, according to BusinessDesk. 

The capital raised will go into growing the mortgage broking side of the business, Squirrel Mortgages and continue development on its P2P lending business, Squirrel Money. 

Squirrel chief executive John Bolton said there had been $4 million of pre-registered interest from Squirrel’s 10,000-strong customer base who are likely to fill the $2 million available through the retail side of the offer. Wholesale investors will be targeted for the remaining $3 million sought in the offer which is open for three weeks. The company is issuing five million shares at $1 apiece.

“The price-earnings ratio for the mortgages business is currently 18 times, which is on the high side as far as the standard goes on the sharemarket but that PE ratio is forecast to drop in the projections to 9 times in 2018 and then to 4 times in the 2019 financial year,” Bolton said. “We just have to get through this and settle down for a bit and stay focused on the growth plan and deliver on that.” 

RBNZ appoints new head of currency, property and security
The Reserve Bank of New Zealand announced the appointment of Steve Gordon as its new Head of Currency, Property and Security (CPS), the area of the Bank that is responsible for meeting the currency needs of the public, and the property and security requirements of the Bank. 

Gordon joined the Bank in 2012 and will move from his current position as head of Risk, Assessment and Assurance.  Under his leadership, the Bank was recently awarded the Central Bank Initiative of the Year for its Enterprise Risk Management Framework.  

Gordon has a commercial bank risk and audit background and previously he has served as Head of Risk and Business Support at the Bank of New Zealand and Head of Audit at BNZ.

Current Head of CPS, Brian Hayr, will take up a position at Innovia Security Pty Ltd in May. 

Mortgage Express appoints new adviser
Mortgage Express has appointed Robin Mallasch as their latest mortgage adviser based in Bay of Plenty and brings 23 years’ experience in the industry to the role. 

“Having owned several rental properties myself, I have first-hand experience in setting up and managing family trusts, buying and selling investment properties, and self-employment borrowing,” says Mallasch, who will be focusing on all forms of residential and commercial finance.

General manager of Mortgage Express Sarah Johnston says, “Robin’s friendly, honest approach, combined with his considerable experience and expertise in the financial services industry, is an asset to Mortgage Express, and we look forward to working with him.”

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