FUNDING Circle is seeking a market valuation of up to £1.8bn through its upcoming initial public offering (IPO) on the London Stock Exchange.
The peer-to-peer lending platform has set a price range of 420p to 530p for the listing, which aims to raise proceeds of around £300m.
The offer will comprise a maximum of 71,428,571 new shares plus a secondary sale by existing shareholders. After the IPO, Funding Circle anticipates having between 330 and 345 million shares.
The target price range would give the company a market capitalisation of between £1.4bn and £1.8bn. This compares with valuations of £1.2bn and £1.6bn at mortgage and loans provider Paragon Banking Group and sub-prime lender Provident Financial, respectively.
Funding Circle said it expects to join the technology sector of the FTSE UK indices.
Certain existing shareholders, directors and employees are entitled to sell 25 per cent of their holdings in the IPO, but Funding Circle said it has not yet received any binding commitments to take up this option.
The IPO, which marks the first public float of a UK P2P lending platform, aims to increase Funding Circle’s brand awareness, demonstrate its transparency, boost its capital-raising options and help in recruiting and retaining employees.
Retail investors will be able to apply for shares via intermediaries such as Hargreaves Lansdown, AJ Bell Youinvest and The Share Centre, with a minimum application size of £1,000.
The lender has previously said existing customers would have an opportunity to participate in the offering.