25 July 2016
Find out more

Wonga ponders £1bn US float

06 June 2012  |  4015 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
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)

Finextra news in your inbox

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

Related stories

Wonga starts lending to businesses

Wonga starts lending to businesses

08 May 2012  |  3833 views  |  2 comments
OFT investigates payday lenders

OFT investigates payday lenders

24 February 2012  |  5029 views  |  0 comments
After fierce protest, Wonga withdraws student loans information

After fierce protest, Wonga withdraws student loans information

12 January 2012  |  5609 views  |  0 comments
Wonga secures £73 million funding

Wonga secures £73 million funding

17 February 2011  |  7713 views  |  0 comments
Wonga turns iPhone into 'virtual cash machine'

Wonga turns iPhone into 'virtual cash machine'

20 January 2010  |  10634 views  |  1 comments
Online lender Wonga.com secures $22m financing round

Online lender Wonga.com secures $22m financing round

08 June 2009  |  6011 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
06 June 2012
Visit www.abe-eba.euVisit capgemini.comVisit VocaLink.com

Top topics

Most viewed Most shared
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
8386 views 14 comments | 32 tweets | 37 linkedin
satelliteContactless Bitcoin startup Plutus Tap &am...
8175 views comments | 6 tweets | 3 linkedin
hands typing furiouslyWhat Every FinTech CEO Should Know About R...
8066 views 0 | 14 tweets | 8 linkedin
hands typing furiouslyBanking on IoT: Security in the Internet o...
8016 views 3 | 20 tweets | 7 linkedin
Santander doubles down on fintech fundSantander doubles down on fintech fund
7668 views comments | 22 tweets | 28 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job