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Finance

Consumer credit provider NewDay plots £2.5bn IPO

The credit company processed over £5bn of purchases based on more than 120mln customer transactions in the 12 months to June

NewDay, a consumer credit provider, is preparing for a flotation on the London Stock Exchange, where it could be valued above £2.5bn, according to reports.

The company, which claims to provide nearly 5mln customers with responsible access to credit under its Newpay buy-now-pay-later, Aqua credit card and Bip digital brands, has appointed banks to help with the initial public offer, Sky News reported.

NewDay's chairman is Sir Michael Rake, ex chairman of BT Group, easyJet and KPMG, and chief executive is John Hourican, former investment banking boss of RBS (now NatWest Group).

The group, where partners include Amazon.com, Argos and AO World, is backed by private equity groups Cinven and CVC Capital Partners.

NewDay says it processes over £5bn of purchases a year, with more than 120mln transactions processed in the 12 months to 30 June 2021.

Receivables were £2.9bn at last count, with a compound annual growth rate of 13% from 2014 to the first half of 2021, according to its website.

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