September 20, 2019 / 9:46 AM / 10 months ago

UPDATE 1-Australia's Latitude Financial to list in $2.5 bln IPO -sources

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By Paulina Duran

SYDNEY, Sept 20 (Reuters) - Australia's Latitude Financial is planning to list on the local bourse in an IPO that could value the non-bank lender at about A$3.7 billion ($2.51 billion) in by far the country's largest of the year, two sources told Reuters.

The plans mark the second attempt at listing in the last year for Latitude, which is partly owned by Deutsche Bank and U.S. private equity firm KKR & Co.

Last year, Latitude deferred its planned IPO due to market conditions and a change in leadership at the mortgage lender while the country's financial industry was being scrutinised by a national misconduct inquiry. [

One of the largest non-bank lenders in Australia, it offers low-document home loans and credit cards. It plans to lodge a prospectus with the corporate regulator on Sept. 26, the sources said, declining to be identified because they are not authorised to speak to the media.

Latitude expects to report cash earnings of about A$288 million for the 12 months ending June 2020, the sources said, citing a Goldman Sachs report distributed to investors.

The sources added that the shares could be priced at about 13 times those earnings.

Representatives for Latitude were not available for immediate comment.

$1 = 1.4728 Australian dollars Reporting by Paulina Duran in Sydney; editing by Jason Neely

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