Steadfast has detailed its plans to establish “hub brokers” to enable consolidation of small and medium-sized brokers into larger, well-established firms.

Company documents lodged with the Australian Securities and Investments Commission (ASIC) say consolidation will realise potential cost synergies and benefits from increased scale, as well as enable owners of small and medium-sized firms to partner with a broker that can provide a similar culture for their staff.

The documents have been lodged prior to an extraordinary general meeting on June 14 where shareholders will vote on a restructure and public listing.

“Steadfast is also seeking to facilitate succession planning among brokers by supporting owners of Steadfast network brokers to develop internal talent,” the documents say.

The hubs to be established over time would be debt-funded, or the company may offer shares as consideration.

Steadfast says its proposed listing on the Australian Securities Exchange in July/August will give the company greater capacity for growth.

It expects to issue 65.74 million shares under a reweighting, where an allocation of shares is made to existing shareholders that reflects their historic contribution to Steadfast.

Another 10.9 million shares would be issued to four executives and around 247.95 million “consideration shares” would be issued to acquire shares in 60-70 brokerages.

To give an indication of its future size, the company has re-stated its financial position on June 30 last year when it had net assets of $14.47 million, to show net assets in the order of $265.92 million when a minimum number of target acquisitions have been made.

Also see ANALYSIS