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Funding Circle confirms plans for London listing in October

Funding Circle said Anders Holch Povlsen had agreed to buy 10% of the share capital through his investment vehicle Heartland A/S

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Funding Circle's listing will include new and existing shares and be open to retail investors

Funding Circle on Monday said it hopes to raise around £300mln by becoming the first peer-to-peer lending platform to list on the London Stock Exchange.

The company, which is expected to be valued at around £1.5bn when it lists next month, said it would use the proceeds to strengthen its balance sheet to help it take advantage of opportunities in existing and new geographies and to raise brand awareness through marketing. The news came on the same day that luxury carmaker Aston Martin confirmed its intention to float in London next month.

READ: Aston Martin confirms intention to pursue IPO 

The lender, which is backed by Danish billionaire Anders Holch Povlsen and launched in 2010, said its listing would demonstrate the business’ maturity, transparency and governance to investors and borrowers. 

Funding Circle confirmed its IPO plans last week and said Povlsen had agreed to buy 10% of the share capital through his investment vehicle Heartland A/S, as long as the valuation does not exceed £1.65bn.

The company has yet to make a profit and reported a loss of £35.3mln in its last financial year. The listing will include new and existing shares and be open to retail investors, it added.

Merrill Lynch, Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) are acting as joint global co-ordinators and joint bookrunners on the offer, Funding Circle said, and Numis Securities (AIM:NUM) is acting as joint bookrunner. BofA Merrill Lynch (NYSE:BAC) is acting as sole sponsor.

“The directors believe that this is an appropriate time to bring the Group to the public market, reflecting the robust foundations established for future growth,” Funding Circle said in its statement.

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AIM:NUM
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