FUNDING Circle has reduced the price range of its initial public offering (IPO) as its offer period approaches its end.
The peer-to-peer lender, which confirmed plans to float on the London Stock Exchange earlier this month, has narrowed its price range from 440p to 460p from an initial 420p to 530p.
The news was first reported by Reuters, citing an unnamed bookrunner on the deal.
Funding Circle is looking to raise around £300m from its stock market listing. It had previously been seeking a valuation of up to £1.8bn but its new pricing would put its valuation at around £1.5bn.
The offer period closes on 27 September, with Funding Circle expected to list on the main market of the London Stock Exchange next month.
Funding Circle said at least 25 per cent of its shares would be offered on a free float, through approved intermediaries such as Hargreaves Lansdown and AJ Bell.
However, AJ Bell has said that the P2P platform’s offering has generated slightly less interest among its retail investors than other new IPOs.
“We’ve had a slightly lower level of interest compared to other IPOs,” a spokesperson for the investment platform told Peer2Peer Finance News.
“It is slightly hard to judge because there are a few other competing IPOs at the moment.
“We have the Smithson and AVI Japan Opportunity investment trusts open at the moment and the Mobius Investment Trust IPO has just closed.”
It is believed that Funding Circle is expecting more institutional than retail interest and has already secured the backing of Anders Holch Povlsen, a major investor in companies such as e-commerce firm ASOS.
He has committed to purchasing 10 per cent of Funding Circle’s issued ordinary share capital.
Funding Circle declined to comment.