Bravura Solutions announces initial public offer

Bravura Solutions Limited (Bravura), a leading provider of software to the wealth management and funds administration industries, has today announced an initial
public offer of shares in Bravura at an offer price of $1.45 to raise a total of $148 million (Offer).
On completion, new shareholders are expected to hold 48% of Bravura shares. Existing shareholders, including management and the Ironbridge Funds, will hold 52% post listing and will also enter into voluntary escrow arrangements restricting the future sale of shares.
The Offer comprises:
• An institutional offer, which consists of an offer to institutional investors in Australia and certain other eligible jurisdictions;
• A broker firm offer, open to Australian and New Zealand resident retail clients of brokers who receive a firm allocation of shares and are not located in the United States;
• An employee offer, made to eligible employees nominated by the company; and
• A priority offer, made to selected investors nominated by the company who have received a priority offer invitation.
The institutional offer, broker firm offer and priority offer are fully underwritten by Goldman Sachs and Macquarie Capital.
Mr Brian Mitchell, Chairman of Bravura said that on behalf of the Directors, he was pleased to offer investors the opportunity to become shareholders in Bravura, a market leading financial software company founded in Australia and now an international market leader.
“Bravura is providing leading software solutions in the wealth management and funds administration industries to help our clients navigate the changing financial landscape,” said Mr Mitchell.
“This ranges from launching new products, improving their efficiency, delivering mobile and self directed solutions and managing compliance in an evolving and complex regulatory environment. Our innovative solutions directly address the challenges our clients are facing and have been a key driver of growth for Bravura.”
Bravura provides software products and services which support the front-office, middle-office and back-office functions needed to manage and administer investment products and wrap platforms, superannuation, pension and retirement products, life insurance, private wealth and portfolio administration.
Bravura has 60 wealth management and 11 funds administration clients including blue chip organisations such as Fidelity International, Prudential and Mercer. Bravura also has contracts with the top six bank based wealth managers in Australia and supports over 285 investment management companies, directly and through third party administrators. Bravura’s leading software manages more than AUD$2.3 trillion of assets on behalf of clients across Asia Pacific and Europe, Middle East and Africa regions.
There are a number of challenges confronting the wealth management and funds administration industries, including an evolving and complex regulatory environment, increased customer demand for mobile technology and the need for innovation, cost efficiency and scale.
Over the past decade, Bravura has developed Sonata (its flagship product) investing approximately $100 million to create a modern, customer-centric software solution. The
development has involved unifying the functionality in Bravura’s other existing software products onto one platform, based on a single code base to allow for flexible rollout of new functionality.
Revenue generated from Sonata experienced a compound annual growth rate (CAGR) of 137% between FY2013 and FY2016. The FY2016 revenue from Sonata of $67 million represents over a third of total revenue of $185 million for the year.
Bravura CEO, Tony Klim said Bravura has developed the market benchmark in software solutions for the wealth management and funds administration industries.
“Bravura has built a leading and flexible product which predicted the future needs of our clients in wealth management and funds administration. Our vision was to always stay one step ahead of the structural changes of the industry and we believe the continued demand for Sonata is evidence of this philosophy. We are excited about the future international rollout of Sonata.
“As an Australian founded company that is now an international technology success story, we are extremely proud of what Bravura has achieved. With a large addressable market and growing IT spend internationally, we are now focussed on converting the multiple opportunities we see as the industry continues to shift to a single platform solution that is cost efficient and flexible. In this regard, we are leading the way, facilitating continuous industry improvement that is shared across our clients and the sector,” said Mr Klim.
Information Technology spend in the APAC and European wealth management industries was approximately AUD$1.2 billion and AUD$2.7 billion respectively in 2014 and is expected to grow at a CAGR of 7.1% and 7.0% to AUD$1.9 billion and AUD$4.0 billion respectively by 2020.
Bravura’s flagship Sonata platform is designed to meet the needs of this growing industry via:
• Managing regulatory compliance: Bravura assists clients in managing compliance – and the potential financial impact of non-compliance – in a constantly changing financial
services regulatory environment.
• Providing financial product support: A leading software solution which supports a wide range of financial products including wrap platforms, superannuation, pension and
retirement products, life insurance, private wealth and portfolio administration allowing Bravura’s clients to replace multiple legacy platforms with a single software solution,
reducing cost and complexity.
• Delivering flexible architecture: Developed from the ground up on a single code base, Bravura can quickly and continually add functionality to the Sonata platform
allowing clients to bring more of their business onto one platform.
• Innovating via mobile platforms and self-directed technology: Bravura allows data access on multiple digital platforms (e.g. smartphones, tablets and personal
computers), a crucial tool for industry participants to attract and retain customers.
The current timetable for the IPO is as follows:
Prospectus Date Friday, 28 October 2016
Broker Firm Offer, Priority Offer and Employee Offer opens Monday, 7 November 2016
Broker Firm Offer, Priority Offer and Employee Offer closes Friday, 11 November 2016
Settlement of the Offer Tuesday, 15 November 2016
Issue and transfer of Shares under the Offer Wednesday, 16 November 2016
Commencement of trading on ASX on a deferred settlement basis Wednesday, 16 November 2016
Expected dispatch of holding statements Thursday, 17 November 2016
Expected commencement of trading on ASX on a normal settlement basis Friday, 18 November 2016
This timetable is indicative only and subject to change. Bravura has lodged a prospectus for the Offer of its shares with the Australian Securities and Investments Commission (ASIC) on 28 October 2016. A copy of the prospectus can be viewed or downloaded online at http://www.BravuraSolutionsIPO.com.au.
Fort Street Advisers is Bravura’s Financial Adviser. Goldman Sachs and Macquarie Capital are acting as Joint Lead Managers and Clayton Utz is acting as the legal adviser to the Bravura IPO.