FUNDING Circle has officially been listed on the London Stock Exchange with an initial public offering (IPO) of £300m, and a valuation of £1.5bn.
It is the first UK-based peer-to-peer lending platform to go public.
Samir Desai (pictured), chief executive of Funding Circle, said that the listing is a “recognition of the strength and global impact of our model”.
“We look forward to starting this exciting new chapter for the business as we focus on growth across all markets and seek to create a better financial world for small businesses and investors,” Desai added.
“I am pleased to welcome our new shareholders and I would like to thank my fellow Circlers for all their hard work since we launched. Funding Circle is a very ambitious company and we are excited to continue growing our business over the coming years. The UK is a great place to start and grow a fintech business and we are proud to have listed on London Stock Exchange today.”
Funding Circle confirmed its IPO plans earlier this month following almost a year of speculation. The firm appointed Merrill Lynch, Goldman Sachs, Morgan Stanley and Numis to manage the float, and pledged that at least 25 per cent of the company’s issued share capital would be placed on a free float.
Earlier this week, the P2P lender narrowed the price range of its IPO to 440p to 460p, from an initial 420p to 530p. The offer period closed yesterday, but Funding Circle was not expected to achieve its listing until next month.
“We congratulate Funding Circle on its successful IPO,” said Dr Robert Barnes, global head of primary markets and chief executive of Turquoise, London Stock Exchange Group. “We have watched with great interest the development of the fintech industry over the last decade. Funding Circle’s IPO today further confirms London as a leading international financial centre for raising capital for global fintech businesses.
“Sitting at the heart of UK’s financial ecosystem, the London Stock Exchange is the natural funding partner to a sector that is reshaping the global financial services landscape. We are proud to support these businesses throughout their growth journeys, offering them access to deep liquid pools of international investor capital for the long-term.”
Tech companies on the London Stock Exchange have raised more than £20bn in IPOs and follow-on capital since 2015. Furthermore, tech-based IPOs have accounted for almost 30 per cent of all IPO capital raised in 2018 to date, with fintech alone representing seven per cent.
In recent months, both Zopa and RateSetter have indicated that they are planning their own IPOs, with Zopa raising £44m last month during the first stage of a new investment round. Meanwhile, RateSetter was reportedly in talks for a £30m fundraising round earlier this summer.