Newly launched IPO of Springleaf Holdings, LLC (NYSE:LEAF) Appreciates 10% in First Week


Dallas, Texas 11/05/2013 (Financialstrend) РThe $1.16 billion market capped credit services provider Springleaf Holdings, LLC (NYSE:LEAF) had managed to raise $336 million from its first public offering of close to 21 million of its common stock. The firm had set a price of $16 per share for the IPO. As of close of business on November 4 the shares were trading at $21.63 as of close of business translating to a 35% discount on the current trading price. The firm which began public trading on NYSE offers finance and credit related services to its customers. The company’s business model is dependent on providing loans to customers by securing those against automobiles and other personal properties. It also offers real estate loans by covering them against secondary mortgages on residential real estate. It also makes money by underwriting insurance products.

While the firm is recently listed, the firm has been in operations since 1920 and is based in Indiana. Since its IPO on October 16, the stock has appreciated by a impressive 10.3% and is currently trading just 1.4% below its 52 week high pricing. The firm has managed to post sales of $1.98 billion in the past one year and has totalled up $80 million loss in the same time period. It had managed to post sales increase of 150% in the second quarter which ended on June 30. The firm has employee strength of 4500 and has total shares outstanding of 100 million.

In the previous quarter the firm was able to post gross margin increase of 50% with a profit margin which had dipped by 13% in the same period. Post the IPO and the generation of sustained cash flow, the firm would be able to expand its product offerings and market access which would help the firm increase its earnings per share.