Wednesday 18 July 2018

Sub-prime lender Amigo to list with £1.3bn valuation

Amigo provides loans to individuals with poor credit histories.

The firm’s founder will sell shares as part of the listing (Matt Crossick/PA)
The firm’s founder will sell shares as part of the listing (Matt Crossick/PA)

By Helen Cahill, Press Association City Reporter

Amigo, the lender which provides finance to individuals with poor credit histories, will be valued at more than £1.3 billion as it floats on the London Stock Exchange.

The company provides loans of between £500 and £10,000 for up to a year at a rate of over 40%, with repayments guaranteed by someone connected to the customer, such as a friend or family member.

Amigo is listing on the London Stock Exchange at a price of 275p per share.

Founder James Benamor, who started the firm when he was 21, will sell part of his stake through the listing.

Mr Benamor’s company, Richmond Group Limited, will sell close to 119 million shares through the listing, making proceeds of around £326.8 million.

Amigo has a net loan book of £647 million and around 182,000 borrowers.

Glen Crawford, chief executive of Amigo, said: “Today is a significant milestone for all of us at Amigo.

“We are delighted with the level of support and interest we have received from our new investors.

“We look forward to further growth and success as a listed company and helping even more people who need alternative finance options.”

Press Association

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