Property lender LendInvest has filed the paperwork for an initial public offering (IPO) on the FTSE AIM market next week.
The IPO documents value the company at £255.6m.
LendInvest expects to raise £40m through the IPO, by issuing 21,531,722 in new ordinary shares at a price of 186p per share. This money will be used to invest in the platform’s growth by accelerating its technology roadmap and strategically expanding into new property finance product areas.
“We are delighted to reach this important milestone,” said Rod Lockhart, chief executive of LendInvest.
“We are very proud of what the team has achieved already but we are also hugely excited about the opportunities we see ahead.
“Our differentiated, technology-driven business model makes us uniquely placed to lead the digital disruption of the property finance sector and, in turn, continue attracting deep pools of investor capital to our platform. This IPO will provide us with the resources and flexibility to continue investing in our technology, expand our range of products and enter new segments of the market.”
LendInvest has expanded at a rapid rate in recent years and in January it secured a £500m commitment from JP Morgan to help scale up its buy-to-let mortgage lending business.
In its latest half-year results, for the six months to 30 September 2020, LendInvest reported a 244 per cent year-on-year rise in core earnings to £6.2m.
Gross revenue rose by 11 per cent year-on-year to reach £56.4m, while almost £1.4bn was processed via gross loans and advances, up 27 per cent year-on-year. It currently has £2.8bn in funds under management.
“It’s been an exciting journey building LendInvest over the course of the last 13 years, but there’s a real sense amongst the team that we’re just getting started,” added Christian Faes, founder and executive chair of LendInvest.
“Property finance is one of the biggest markets in financial services, and yet still offers amongst the worst customer experience with offline, archaic processes. LendInvest is changing this.
“We are thrilled to welcome our new shareholders to the business and look forward to beginning the next stage of our journey.”
The filing comes two years after LendInvest first mulled a stock market listing. In 2019, the company hoped to get a valuation of approximately £500m, but later abandoned these plans in favour of a private cash injection.
Earlier this year, LendInvest revealed that it hoped to secure a £300m valuation ahead of its IPO.
The listing is due to take place at 8am on 14 July 2021, under the ticker LINV.