Prospa has postponed its initial public offering on the ASX after consultation with joint IPO lead managers UBS and Macquarie.
Initially pausing just prior to its listing, the small business lender has confirmed the further postponement of its IPO.
In a statement, Prospa said its initial pause was related to a letter it received on Tuesday afternoon from ASIC, which requested further information from the small business lender regarding an industry review of small business lending contract terms.
The small business lender cited a desire to engage with ASIC and other stakeholders as the reason behind its pause on Wednesday.
Prospa added it understood other major industry participants were undergoing a similar review and consultation process, and said over the past 48 hours it had engaged constructively with ASIC to review its current loan terms, providing detailed information in response to the regulator's letter.
In its statement Prospa added it was satisfied the issues discussed with ASIC were not material to its IPO, it also said no additional disclosure was required in the prospectus.
Additionally, the company said it had the complete support of its board and existing shareholders, including major shareholders Entree Capital, Square Peg Capital, and AirTree Venture Capital, who had committed over $47m to the IPO. According to Prospa, the $47 million committed by the three investors was roughly half of the new funds coming into the company.