Funding Circle IPO will be open to platform’s existing investors

FUNDING Circle has said it expects its existing investors will be able to become shareholders in the company after it goes public.

The peer-to-peer business lender confirmed on Monday that it is looking to float on the stock market, following nine months of unconfirmed reports.

Funding Circle said that its initial public offering (IPO), if it goes ahead, would aim to raise around £300m, with at least 25 per cent of the company’s issued share capital to be placed on a free float.

In a blog post on its website, also on Monday, the P2P lender said that its customers would have the opportunity to apply to participate in the IPO and become a shareholder in Funding Circle via an intermediaries offer.

“Further information on this possible offer and the potential intermediaries involved will be available in due course,” Funding Circle added. “We anticipate any potential intermediaries offer to open in the coming weeks if the IPO proceeds. Once open there will only be a limited time in which to apply. Before making any investment decision you should speak with your own stockbroker or financial advisor.”

Read more: Stock market flotations will take P2P to the next level

Investors will be able to buy shares in Funding Circle through Hargreaves Lansdown, the DIY trading platform said on its website.

Hargreaves Lansdown has invited interested investors to register, to be kept up to date on how to invest and the deadline for investing.

Some analysts have suggested that P2P lenders who go public could introduce shareholder restrictions to avoid a conflict of interest. John Cronin, financials analyst at stockbroker Goodbody, said there is a risk that shareholders in P2P lenders could channel material volume through the platform, thereby supporting the company’s valuation.

For more on this topic, read the full news story on page 5 in our latest magazine, now available to read online.