Herbert Smith Freehills is advising Pepper Group Limited (Pepper) on its initial public offering (IPO) and listing on the Australian Securities Exchange (ASX). The offer consists of a broker firm offer, institutional offer, employee gift offer, personnel offer and priority offer (Offer) and Pepper’s market capitalisation is A$471 million at the offer price of A$2.60 per share.

Pepper is a specialist residential mortgage and consumer lender and loan servicer, operating in targeted market segments in Australia and internationally, many of which are underserviced by traditional bank and other prime lenders. Pepper offers a broad range of lending products including residential mortgages, auto and equipment finance, point-of-sale finance and personal loans. Pepper also provides loan servicing for its own products as well as for third parties across residential mortgages, consumer unsecured and secured loans and commercial real estate backed loans.

Pepper is scheduled to list on the ASX on 31 July 2015 on a conditional and deferred settlement basis. The Offer comes at an exciting time for Pepper and is being conducted to provide Pepper with the financial flexibility to pursue growth opportunities, increase its profile and achieve other key objectives as outlined in the prospectus.

The Herbert Smith Freehills team was led by partners Philippa Stone and Mark Currell, who were supported by executive counsel Hemang Shah, senior associate Lucy Hall, and solicitors Hayden Guthrie, Thomas Mawson and Tom Hambrett.

Philippa Stone said, "We have thoroughly enjoyed working with Pepper on what has been a complex and interesting transaction. We look forward to following their continued success as a listed company after this significant IPO."

The Offer is being managed and underwritten by Goldman Sachs Australia Pty Ltd and Macquarie Capital (Australia) Limited (Joint Lead Managers). The Joint Lead Managers are being advised by Gilbert + Tobin.

Herbert Smith Freehills’ capital markets team has also recently acted for:

  * Adairs Limited on its A$398 million initial public offering;
  * Australian Financial Group Ltd on its A$257.8 million initial public offering;
  * SurfStitch Group Limited on its A$214 million initial public offering;
  * the Commonwealth of Australia on the A$5.9 billion Medibank Private initial public offering; and
  * Healthscope Limited on its A$3.6 billion initial public offering.