Online small business lender Prospa's market float has been postponed for 48 hours after the corporate regulator raised questions about its loan terms.
Prospa is seeking to clarify queries raised by ASIC on Tuesday related to its small business loan terms, as the regulator continues an industry-wide review of the small business loan sector.
An ASIC spokesman confirmed that it is reviewing unfair contract terms amongst a number of smaller lenders and industries, but declined to comment further.
The regulator began its review with the big four banks in 2017, and business lending has recently come under the spotlight of the financial services royal commission.
The market was notified of the postponement of Prospa's listing just 15 minuntes before its shares were due to begin trading on the Australian Securities Exchange at 1200 AEST.
Prospa said the listing is expected to be postponed for approximately 48 hours.
The company raised $146 million in its IPO, with bulk of the funds raised earmarked for local expansion, a move into New Zealand and new products.
Prospa will have a market capitalisation of about $576 million when it lists.
The company has a loan book worth $200 million, and has forecast growth in new loans of 34 per cent in 2018, and revenue growth of 44 per cent to $116 million, according to its prospectus.
Prospa was founded in 2012, and Entree Capital is its biggest shareholder, retaining a 34 per cent stake following the initial public offer.
Co-founders and co-chief executives, Greg Moshal and Beau Bertoli, hold 15.5 per cent and 6.1 per cent of the company, respectively.
