Tuesday 18 December 2018

Funding Circle cuts price range for London listing

The firm’s original valuation has now been pegged back to around £1.5bn.

Funding Circle is set to float (PA)
Funding Circle is set to float (PA)

By Ravender Sembhy, Press Association City Editor

Peer-to-peer lender Funding Circle has narrowed the price range for its stock market flotation, slashing the company’s valuation in the process.

The group had originally planned to offer shares at between 420p and 530p, but on Wednesday trimmed that range to between 440p and 460p.

It means that the fintech firm’s original valuation, which stood at up to £2 billion, has now been pegged back to around £1.5 billion.

As part of the initial public offering, Funding Circle will raise £300 million.

The group offers business loans in the UK, US, Germany and the Netherlands and the money raised will be used to bankroll expansion in new markets.

As part of the float, Scandinavian tycoon Anders Povlsen will buy a 10% stake in Funding Circle.

Mr Povlsen owns retailer Bestseller and holds stakes in Asos and Germany’s Zalando.

Merrill Lynch, Goldman Sachs and Morgan Stanley are acting as advisers on the IPO.

Funding Circle, which launched in 2010, matches lenders to small business borrowers.

Last year it booked revenue of £94.5 million, compared with £50.9 million in 2016.

Loans in the same period grew from £721 million to £1.7 billion.

Loans under management as at the end of the first half of 2018 totalled in excess of £2.5 billion.

Press Association

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