Peer-to-peer lender Funding Circle seeks valuation of £1.8bn after IPO
Peer-to-peer lending platform Funding Circle has announced a price range for its initial public offering (IPO) that could value the company at up to £1.8bn.
The London-based fintech firm has set a price range of 420-530p per share, which would raise £300m.
It said the offer would comprise a maximum of 71.4m shares as well as a secondary share sale to be determined in the future.
Danish billionaire Anders Povlsen has already committed to buy 10 per cent of shares through his investment company Heartland.
Read more: Funding Circle confirms intention to IPO
The firm has matched entrepreneurs and small companies with investors providing flexible financing, giving loans totalling £5bn since it began life in 2010.
After the completion of the IPO share capital is expected to be between 329.7m and 345m shares, Funding Circle said.
Read more: Danish billionaire to anchor £2bn float of p2p lender Funding Circle
Existing shareholders are entitled to sell up to 25 per cent of their shares in the IPO, but the company it had no “binding commitment” from any shareholder so far.
As part of its IPO confirmation, the company posted recent results, showing it almost doubled revenue in 2017, making £94.5m compared to 2016’s £50.9m.
In the first half of this year, that figure stood at £63m, up from £40.9m in the first half of 2017. Loans under management for the six months to June stood in excess of £2.5bn.