Agree. Another round of capital raising from IBOA is likely...

Agree. Another round of capital raising from IBOA is likely prior to becoming a full ADI. Currently IBOA is ~9 months in. They have two years to achieve ADI status, with a maximum duration as an RADI of 2.5 years. Here's a useful summary of the requirements. Note that ~$17.5m (Initial capital + CCB) is required, however they are likely I expect to pitch for more to give themselves a buffer. Alex Bank raised $25m (see below).



Also some commentary re: Alex Bank's ADI fundraising round, which may provide some insights into the future for IBOA:

"Alex Bank wants to be profitable from the 2025 financial year, when it expects to record $38.9 million at the cash NPAT line on $125.8 million income.

In banking, to get that sort of high growth you need capital and Alex Bank told potential investors it would likely need to raise equity again in the FY22, FY23 and FY24 financial years, to fuel the fire.

As for the $25 million Series D round, the first $15 million was pegged for meeting required APRA common equity tier one capital requirements, while the next $10 million would flow through to working capital.Alex Bank is 25.2 per cent owned by management and has already broadened out its share register with raisings in 2021 and 2020."