Qualitas launches IPO with $735 million market capitalisation30 November 2021
Qualitas has lodged its prospectus with the ASX to raise $335m as it seeks to grow FUM via co-investments, underwriting and warehouse facilities.
The IPO involves the issue of new shares by Qualitas based on an Offer price of $2.50 per share. The Offer is fully underwritten and based on the Groups indicative market capitalisation of $735 million.
Founded 13 years ago, Qualitas’ funds platform today consists of 13 active funds, comprising five specialist commercial real estate credit funds and eight specialist real estate private equity funds. Together with other investor and non-fund mandates, Qualitas has a total of $4.22 billion in funds under management (FUM), having delivered compound annual growth in FUM since inception of 36 per cent. Qualitas has over 65 staff members across its Melbourne and Sydney offices and a senior executive team that has an average of more than 28 years of real estate investment, structured finance and investment management experience.
Qualitas Chairman Andrew Fairley AM said, “Since its founding, the business has sought to leverage its strong local market knowledge, specialised management skillset, industry contacts and broader investment infrastructure spanning origination, execution and active asset management to deliver on its investment strategies. This investment approach has driven attractive, risk-adjusted returns for our fund investors and, in turn, has enabled Qualitas to consistently grow its underlying FUM and build strong, enduring relationships with domestic and international institutions. We are excited about the future prospects of Qualitas and are pleased to have the opportunity to welcome new investors to share in this exciting journey.”
Qualitas Co-Founder and Group Managing Director Andrew Schwartz said, “The IPO provides an opportunity for investors to partner with us in the operating vehicle and enjoy the future growth of a company highly respected by clients and well recognised by peers here in Australia and offshore. In many ways, we are still at the start of our journey and we are presenting this opportunity at a time of strong underlying momentum in our business across all our strategies. We treasure our Qualitas track record and will work hard to maintain our results now and into the future for the benefit of new and existing investors.”
Proceeds from the Offer will be used primarily to fund co-investments to grow FUM and to provide balance sheet capacity to underwrite, bridge and warehouse time-sensitive investment opportunities for Qualitas funds.
The existing shareholders of Qualitas are not selling any shares as part of the Offer. Immediately following completion of the Offer, it is expected that existing shareholders will hold shares equivalent to approximately 54.4% of total shares then on issue. These shares will be subject to voluntary escrow arrangements, with the final tranche escrowed until late 2026.
Qualitas has applied for admission to the official list of the ASX and quotation of shares on the ASX, under the code “QAL”. Subject to the approval of the application, it is expected that trading of the shares will commence on a conditional and deferred settlement basis on or about 16 December 2021.