Assetz Capital intends to launch an initial public offering (IPO) within the next three years, as part of its long-term expansion plans.
Stuart Law (pictured), chief executive of Assetz Capital, told Peer2Peer Finance News that the peer-to-peer lender expects to plan a “modest free float” at the end of that time period.
“It’s likely that we will IPO part of the company as a modest free float,” he said.
“It will further bolster our balance sheet which will be very strong by then, and give us the opportunity for potential acquisitions should we find anything. It would also help us bring down the cost of capital and make the company more profitable.”
Just one UK P2P lending platform has launched an IPO to date. Funding Circle went public in October 2018 with a float price of 440p. Since then, the company’s stock has been trading below the IPO price.
Law added that an Assetz Capital IPO would give its shareholders a chance for some liquidity, but he pointed out that in three years’ time the listing process is likely to be very different due to changing regulations.
“The stock market and private equity markets are being reviewed at the moment in terms of marketplaces to sell shares,” Law said.
“So I think in three years they will look very different to make it easier for private companies to sell small shareholdings between people. For now, it’s possible but it’s not that easy.”