Australia-based small business lender Prospa is seeking to raise up to A$160 million in its IPO, The Australian Financial Review's Street Talk blog reported May 10, citing documents detailing the offering.

The bank will offer shares at A$3.04 to A$3.83 apiece. Macquarie Capital and UBS Group AG will run a bookbuild May 17 to determine the final price.

Under the public float, A$100 million will go into the company and up to A$60 million will be raised from the owners selling down their stakes. The deal will value the company at between A$500 million and A$600 million.

The offering will allow Prospa to finance its investment in the equity portion of the loan book in the warehouse securitization and ABS issuance funding platform, as well as use the funds for working capital, the report noted.

Israel-based venture capital fund Entree Capital, which holds a 34.4% stake in Prospa, is expected to tip fresh funds into the offer, while Square Peg Capital Pty Ltd., which holds a 4.5% stake, will acquire A$10 million of shares in the IPO.

The company is set to list June 8.