Qualitas (ASX:QAL) shares are hitting the ASX boards today following its IPO

The Qualitas IPO is here…

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Qualitas Group (ASX: QAL) shares will commence trade on the Australian share market on Thursday following the completion of its initial public offering (IPO).

The Qualitas IPO

Qualitas is one of Australia's leading alternative real estate investment managers. Founded 13 years ago, Qualitas' funds platform now comprise 13 active funds. This includes five specialist commercial real estate credit funds and eight specialist real estate private equity funds.

Together with other investor and non-fund mandates, Qualitas has a total of $4.22 billion in funds under management (FUM), having delivered compound annual growth in FUM of 36% since inception.

Its shares land on the ASX boards today after raising total gross proceeds of $335 million at an offer price of $2.50 per share.

Proceeds from the offer will be used primarily to fund co-investments to grow its FUM and to provide balance sheet capacity to underwrite, bridge, and warehouse time-sensitive investment opportunities.

A real confidence boost for the IPO was news that existing Qualitas shareholders are not selling any shares as part of the offer. This means that existing shareholders will hold the equivalent of approximately 54.4% of total shares on issue. Furthermore, these shares will be subject to voluntary escrow arrangements, with the final tranche escrowed until late 2026.

Based on the above, Qualitas will have a market capitalisation of $735 million upon listing.

"An exciting journey"

Qualitas' Chairman, Andrew Fairley AM, was pleased to see the company list and appears positive on the future.

He said: "Since its founding, the business has sought to leverage its strong local market knowledge, specialised management skillset, industry contacts and broader investment infrastructure spanning origination, execution and active asset management to deliver on its investment strategies."

"This investment approach has driven attractive, risk-adjusted returns for our fund investors and, in turn, has enabled Qualitas to consistently grow its underlying FUM and build strong, enduring relationships with domestic and international institutions. We are excited about the future prospects of Qualitas and are pleased to have the opportunity to welcome new investors to share in this exciting journey," he added.

This sentiment was echoed by Qualitas Co-Founder and Group Managing Director, Andrew Schwartz.

He said: "The IPO provides an opportunity for investors to partner with us in the operating vehicle and enjoy the future growth of a company highly respected by clients and well recognised by peers here in Australia and offshore."

"In many ways, we are still at the start of our journey and we are presenting this opportunity at a time of strong underlying momentum in our business across all our strategies. We treasure our Qualitas track record and will work hard to maintain our results now and into the future for the benefit of new and existing investors," he concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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