Funding Circle cuts price range for IPO with valuation set for £1.5bn
Peer-to-peer lending platform Funding Circle has cut the price range for its initial public offering (IPO), according to a bookrunner on the deal.
The London-based fintech firm had set a price range of 420p to 530p per share but it has now tightened the range to 440p to 460p per share.
Books are set to close on 27 September.
Read more: Danish billionaire to anchor £2bn float of p2p lender Funding Circle
It had been expected to be valued at £1.8bn in the float but the listing in October is now likely to reach a valuation of £1.5bn, despite having never turned a profit.
Funding Circle has matched entrepreneurs and small companies with investors providing flexible financing, giving loans totalling £5bn since it began life in 2010.
Danish billionaire Anders Povlsen had already committed to buy 10 per cent of shares through his investment company Heartland before the prospectus was published last week.
Read more: Funding Circle could be valued at £1.8bn after IPO
Funding Circle said the float would allow it continue to prioritise “growth over profit”.
As part of its IPO confirmation, the company posted recent results, showing it almost doubled revenue in 2017, making £94.5m compared to 2016’s £50.9m.
In the first half of this year, that figure stood at £63m, up from £40.9m in the first half of 2017. Loans under management for the six months to June stood in excess of £2.5bn.