Netwealth mulls equity changes amid IPO talk

Speaking to ifa, Netwealth joint managing director Michael Heine confirmed his brother Leslie – with whom he ran Heine Management before selling to Mercantile Mutual in 1999 – has decided to reduce his 33 per cent shareholding over time for “estate planning purposes”.

Leslie Heine intends to retain a “meaningful interest” of some kind, but the likely change in shareholdings opens the door to capital-raising activities.

“In order to achieve this, the Netwealth board continues to consider a range of alternatives although there is no urgency to make any decisions,” Michael Heine said.

While the company was not able to confirm or deny whether an initial public offering may be imminent, a number of sources with knowledge of the matter have told ifa that investment banks have been approached about a potential listing.

Regardless of speculation about an IPO, Michael Heine says he is confident that he and joint managing director Matt Heine will retain control of the business.

“My son Matt and I are totally committed to maintaining a majority and controlling interest and management of Netwealth for the long-term,” Michael Heine said.

“Whatever the timing or outcome, we are very confident that the Heine family will continue to be the majority owners and senior management of Netwealth.”

Netwealth was a finalist in a number of categories at the Fintech Business Awards 2017 and is the owner of dealer group Bridgeport Financial Services.

In 2015, it sold 50 per cent of its Financial Planning Services Australia (FPSA) licensee to Fortnum, with the other half being bought by FPSA member firms.