Banking, finance, and taxes

Supervielle Group Prepares for IPO

Chris Lange

Published: April 19, 2016 1:40 pm

Last Updated: January 13, 2020 10:35 am

Supervielle Group has filed a Form F-1 with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were mentioned in the filing, but the offering is valued up to $100 million, although this number is normally just a placeholder. The company intends to list its American depositary shares on the New York Stock Exchange under the symbol SUPV.

The underwriters for the offering are Morgan Stanley, Merrill Lynch and Raymond James.

This is a private, domestically owned financial group with a long-standing presence in the Argentine financial system and a leading competitive position in certain attractive market segments. It is controlled by the Supervielle family, which entered the Argentine banking sector in 1887. Supervielle owns the fifth-largest Argentine private domestically owned bank in terms of assets.

Supervielle maintains a strong geographic presence in Buenos Aires and the Greater Buenos Aires metropolitan area, which is Argentina’s most commercially significant and highly populated area, and it claims to be a leader in terms of the banking network in some of Argentina’s most dynamic regions, including Mendoza and San Luis.

The bank, which consolidated with Cordial Compañía Financiera (CCF), is the main asset, comprising 97.3% of the company’s total assets, and has a history of strong growth and robust profitability. In the 2011 to 2015 period, the loan portfolio grew at a compound annual growth rate (CAGR) of 34.7%, as compared to an average of 31.1% for the private financial system in Argentina for the same period, according to the central bank.

As of December 31, 2015, the company served over 2 million customers, and its assets totaled roughly $2.5 billion, in addition to about $450 million of assets managed by Supervielle Asset Management. At the end of December 2015, the bank and CCF accounted for 89.3% and 8.0% of total assets, respectively.

The company intends to use the net proceeds from the offering to expand and strengthen its position in the Argentine financial system.