Cuscal CEO Craig Kennedy
Cuscal’s board has pulled the pin on its initial public offer and ASX listing, The AFR reported late yesterday.
The board’s decision follows investor roadshows in the US and Europe last week by CEO Craig Kennedy and chief operating officer Bianca Bates, and presumably feedback was underwhelming.
Cuscal was explaining to potential investors that it was seeking to raise new capital for inorganic growth.
Discontent among its current shareholder base – which is overwhelmingly mutual banks and credit unions – has also been evident.
Cuscal’s board had been relying on its existing shareholders to agree to sell down into the IPO.
Only one – Transport Mutual – has come out publicly to state its unwillingness to do so, but Banking Day is aware there are more reluctant or unwilling to do so.
For now, Cuscal’s position is being styled as a deferral of an IPO, rather than a change of heart by the board.
Many in the mutual banking sector will now wonder whether Kennedy – it’s veteran CEO since 2008 – will stick around for a second run at the ASX boards.