Setback for Class ahead of IPO
Following two major AMP acquisitions, Class is now required to lodge a supplementary prospectus with ASIC.
Class made the announcement yesterday in respect of its prospectus for an Initial Public Offering of ordinary shares and listing on the ASX, dated 26 October 2015.
According to Class, AMP is Class’ largest customer, administering approximately 10,500 SMSFs, which at 31 October 2015 represented around 11 per cent of Class’ billable portfolios.
Yesterday, AMP confirmed to SMSF Adviser it had acquired SuperCorp and SuperIQ.
“The Institution [AMP] has also advised Class that it intends to cancel its licence agreements with Class and move the SMSF portfolios from Class to the acquired competitor. The notice periods under the licence agreements range from a few months to two years,” Class stated.
“This new development requires Class to lodge with ASIC a Supplementary Prospectus to amend the statements and tables impacted by the Institution’s advice to Class.
“In the meantime, applications for shares under the prospectus will be temporarily suspended.
“Following lodgement of the supplementary prospectus with ASIC, acceptance of applications will recommence. It is expected that the supplementary prospectus will be lodged with ASIC by Friday 6 November 2015,” Class said.
Speaking to SMSF Adviser, Class chief executive Kevin Bungard said the company's positioning within the market remains the same despite the setback.
"We are excited about what we have to offer and the services we can bring to the market," Mr Bungard said.