bne IntelliNews – Home Credit files for the Hong Kong public offering


Czech Republic-based consumer lender Home Credit Group has filed for an initial public offering (IPO) on the Hong Kong Stock Exchange, group spokesman Milan Tomanek said, E15.cz daily reported on July 15th. The company declined to comment.

According to Reuters sources, Home Credit could raise more than CZK 22.7 billion ($ 1 billion) with the proposed listing in Hong Kong.

The offer is, however, subject to the approval of the Hong Kong Stock Exchange, the final decision of Home Credit Group and the Home Credit BV (HCBV) unit, market conditions, and various other factors. “Therefore, it is not possible to anticipate whether a global listing or public offering of shares may take place,” the document said, as reported by E15.cz.

Home Credit, founded in 1997, is a leading provider of consumer credit in Central and Eastern Europe (CEEC), the Commonwealth of Independent States (CIS) and Asia. The majority shareholder is PPF Financial Holdings – the financial group owned by Czech billionaire Petr Kellner – with 91.12%, the minority shareholder is the Emma Omega investment holding company owned by Jiri Smejc with 8.88%.

The PPF Group recently increased its stake by finalizing the acquisition of 2.5% of the capital of Home Credit Group from Emma Capital, receiving the last tranche of € 130 million in May. The operation brings the group’s stake in Home Credit from 88.62% to 91.12% currently. The operation valued Home Credit Group at € 8.5 billion.

Home Credit recorded a consolidated profit of € 571m in 2018 (net profit of € 422m), driven by the growth of the treasury loan portfolio and the increase in yield. As the company stated, in 2018 it supported its growth in China by increasing its operating profit by 32%, building on its nationwide scale in China, the number of in-store locations increasing by 7%. The group then posted a consolidated profit of 155 million euros in 1Q19.

“These results demonstrate that our long-term strategy of creating a fully licensed platform in diverse markets is driving substantial growth. This is particularly evident in our region of South and Southeast Asia, where the substantial increase in operating revenue has resulted from the successful scale-up of our lending networks, which rely on our systems. centralized technology, ”said Smejc, commenting on the 2018 results.

Last year, the lender concluded a proposed merger between Air Bank and HomeCredit in the Czech Republic and Slovakia with the Czech Moneta Money Bank. “This comes after the expiration of the exclusivity period agreed between the two parties in October 2018, during which good faith negotiations on binding transaction documents were to take place. No binding transaction document has been executed, ”the company commented in February.

The PPF Group invests in multiple market segments such as banking and financial services, telecommunications, mechanical engineering, biotechnology, insurance, real estate and agriculture. The reach of the PPF Group stretches from Europe to the United States and across Asia, with assets worth more than 45 billion euros.

Reuters reported that Home Credit has joined with other international companies in developing Hong Kong listing plans. However, as the world’s largest brewery Anheuser-Busch InBev NV planned to list its Asia-Pacific subsidiary in Hong Kong, it decided not to proceed with the potential public offering of $ 9.8 billion announced. .