02 April 2015

Wonga ponders £1bn US float

06 June 2012  |  3654 views  |  1 cash

British payday lender Wonga is looking across the pond at a possible £1 billion floatation on a US stock exchange, according to the Telegraph.

The controversial company's co-founder Errol Damelin has begun a "beauty parade" to choose two banks to lead a potential float on the New York Stock Exchange or Nasdaq early next year, says the paper.

Barclays Capital, Goldman Sachs and JP Morgan Cazeno are among those in the running for a float the Telegraph speculates could value Wonga at up to £1.46 billion based on the 20 times historical sales formula attached to LinkedIn's IPO last year.

Founded in 2007, Wonga posted a pre-tax profit of £16.6 million on sales of £73.8 million for the year ended December 2010 and in February 2011 completed a £73 million funding round led by US venture capitalist Oak Investment Partners.

However, the company has faced fierce criticism, accused of targeting vulnerable people and charging exorbitant interest. Shadow business secretary Chuka Umunna recently hit out at plans to begin small business lending while the Office of Fair Trading has slammed its debt collection practices.

Wonga mulls US flotation with £1.46bn value - Telegraph

KeywordsFINDEX

Comments: (1)

A Finextra member | 06 June, 2012, 16:57

Not necessarily sensible to fund yourself in a currency your recievables aren't in but then it looks as if J P Morgan might be in line to hedge this for them.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)
06 June 2012

Related stories

08 May, 2012
24 February, 2012
12 January, 2012
17 February, 2011
20 January, 2010
08 June, 2009

Related company news

 

Top topics

Most viewed Most shared
Europe sets the pace as fintech investment...
6528 views comments | 30 tweets | 20 linkedin
UK online banking fraud losses soar 48%
6154 views comments | 16 tweets | 19 linkedin
Future Money Focus: Mariano Belinky, Santa...
5889 views comments | 12 tweets | 12 linkedin
Apple Pay users running into checkout prob...
5122 views comments | 12 tweets | 15 linkedin
Swift London Business Forum to continue di...
4871 views comments | 5 tweets | 4 linkedin

Featured job

To £130K + Bonuses
London based with substantial travel in the Region

Find your next job