Microfinance business ASA international is aiming for a London initial public offering (IPO) next month that is expected to value it at several hundred million pounds. The Bangladeshi-Dutch lender offers microfinance to low income female entrepreneurs and small business owners in Asia and Africa. It announced its intention to float this morning with the goal of giving it access to the capital markets and incentivising key management and employees. It lends to 1.8m customers and has 1,387 branches and 9,000 staff across the globe. ASA International replicates the model of ASA, which is a Dhaka-based non-governmental organisation first set up in 1978. It plans to roll out its model, which it describes as “easily replicable and highly scalable”, into new countries in Asia and sub-Saharan Africa. The company has issued $299m (£226m) of gross loans since 2013 with an average 25 per cent return on average equity over that period. Its profit last year was $29m. Co-founder and chief executive of ASA International, Dirk Brouwer, said: “The IPO is an important landmark in the group’s development and will provide access to the capital markets in the future, as well as further improve our profile and ability to recruit, retain and incentivise key management and employees.” Fellow co-founder and non-executive chairman Shafiqual Haque Choudhury said: “The ASA microfinance model is widely acclaimed as one of the world’s most efficient models of microfinance, and one that has been overtly designed with a socially responsible lending methodology.” Investment bank Citi is leading the IPO alongside Investec, EFG Hermes and KBW.
The Bangladeshi-Dutch lender, which provides microfinance to low-income businesswomen in Africa and Asia, announced on 18 June that it intended to float, with the intention of gaining access to capital markets and incentivising management and staff. The firm, which has 9,000 staff and 1,387 branches worldwide, lends to 1.8 million customers. ASA International has issued $299m of gross loans since Last year, with an average 25% return during that time. 2013, the company made a profit of $29m. The London IPO is being led by Citi along with Investec, EFG Hermes and KBW.