Despite the challenges of COVID-19, Australia’s wealth management market saw a 3% rise, reaching $1.2 trillion in assets (excluding superannuation). Thanks to a resilient stock market, rising asset values, and increased savings, the future looks promising especially over the next five years, according to research by management consulting firm Oliver Wyman.

Finance professionals are often regarded as the brightest minds especially in forecasting trends and economic outlook, so why not capitalise on their expertise by investing in them? The ASX is set to host a new diversified investment holding company The Australian Wealth Investor Group (AWAG) (proposed ASX: WAG) on 22 December 2023, raising $5 million by issuing 20 million new shares at an issue price of $0.25 per share. The Offer is not underwritten.

The anticipated market capitalisation is approximately $18.6m following the Offer, based on the issue price.

Based in Melbourne and founded in 2021, AWAG is focused on building a diversified wealth management company. Specialising in Mergers and Acquisitions (M&A) within the financial services sector, it comprises two subsidiaries: CHPW Financial, a financial advisor dealer group, and Armytage – a boutique investment management firm overseeing charitable trusts, corporations, superannuation funds, family trusts and individuals.

AWAG is chaired by well-known broker Lee Iafrate with former AFL Chairman, Mike Fitzpatrick also on the board, alongside Paul Young and Mark Stephen. 

Holding an Australian Financial Services License (AFSL), CPHW serves both retail and wholesale investors through its 27 authorised representatives, with revenue generated from licensing, technology access, compliance support, and training fees. 

These representatives also generate revenue by offering services like investment advice, retirement planning, insurance broking, and estate planning to CHPW clients.

Armytage oversees $300 million for retail and wholesale clients, offering managed funds, Individually Managed Accounts (IMAs), and Separately Managed Accounts (SMAs). Funds are accessible through AWAG’s representatives and others. 

Most of the funds raised from AWAG’s IPO will go towards fulfilling obligations to Armytage vendors and for general growth and acquisition purposes. IaFrate is the largest shareholder and should the IPO be successful, his ownership will decrease from 29.1% to 21.47%. 

For the full year ended on 30 June 2023, AWAG reported total revenue of $8.07 million, net profit after tax of $193,000, and a cash balance of $1.8 million.

As per the Prospectus lodged with the ASX, AWAG anticipates that its shares will commence trading under the ticker WAG on 22 December 2023.