UK-based P2P business loans outfit has confirmed plans to float 25% of its shares in an IPO that would value the seven-year old company at £2 billion.
In a prospectus announcing its stock market debut in the Autumn, Funding Circle says it intends to generate £300 million from the float, with a commitment by Danish billionaire Anders Povlsen to buy ten percent of the shares through his investment company Heartland.
Rumours of an imminent IPO for the firm first circulated in January, with talk of a £1 billion valuation. In its recent first half figures, Funding Circle's revenue-generating potential has been to the fore, with the firm posting a figure of £63 million, up from £40.9 million in the first half of 2017. Yet it is still to post a profit, recording a loss of £27 million in H1 2018 and a £35 million loss in 2017.
Samir Desai, chief executive and co-founder of Funding Circle, says: “Today's announcement is the start of the next stage in our exciting and transformational journey. Over the last eight years, we have worked hard to build a platform that is number one in every market we operate in.
“By combining cutting-edge technology with our own proprietary credit models and sophisticated data analytics, we deliver a better deal for small businesses and investors around the world.