Expander: Plans for IPO at the WSE confirmed
Innova Capital private equity fund, which purchased 60 percent shares in Expander in 2007 and in 2010 became the sole company owner, will withdraw from its investment when its value is satisfactory – says Tony Machin, Company CEO.
– My task is to achieve this within three to five years. An IPO at the Warsaw Stock Exchange would be the most realistic method.
He admits that the ever stricter regulations in loan granting only help the business to grow. – New rules mean more bureaucracy, and we are there to help the client manage through it. In short terms – the more regulations the better for financial advisors – says Machin.
He is playing down the potential problem of stricter criteria in mortgage lending which may potentially lead to less clients – the mortgage market in Poland is growing, therefore, even if one person is refused a loan, another one will get a higher one – thinks Expander’s CEO. He wants to win his clients by diversifying the offer, i.e. among others by expanding the insurance and consumer loan offer and also by improving the sales model.
– Poles are strongly focused on direct service, they want to visit the branch, and this is very expensive and time consuming for intermediaries. It is the nature of this country, and I respect it. However, we want to gradually prepare people for changes such as contact by phone or visits of our representative in the client’s house – he announced.
The key changes which the market can expect to happen, according to Machin, will be the shifting of fees paid to intermediaries from service providing firms to customers. – Nobody knows what rates are paid to advisors in Poland, what fees are paid for which type of recommendation. The more complicated products and the stronger the competition, the bigger the chance that more fraud will follow on an unregulated market – says Machin. This model has been adopted in the UK and, according to Machin, it should dominate the financial advisory sector in Poland within the next few years.