How has Lendinvest performed on AIM since its IPO?
Highlights
- Property loan asset management company LendInvest announced a collaboration with UK banking giants Barclays and HSBC worth about £150 million
- LendInvest’s shares have surged by over 15 per cent since listing last month.
Recently listed property finance platform LendInvest Plc (LON: LINV) announced on Monday a lending partnership with banking majors Barclays PLC (LON: BARC) and HSBC Holdings PLC (LON: HSBA), worth up to £150 million.
The partnership will allow the major banks to offer access to short term mortgages to small and medium property businesses and entrepreneurs through LendInvest’s platform. While HSBC has an existing partnership with the company, this is the first time Barclays will be collaborating with the fintech firm.
The news comes just a few weeks after LendInvest listed on the London Stock Exchange’s submarket platform the Alternative Investment Market (on 14 July) in a £255 million initial public offering (IPO). Moreover, the company’s asset under management has increased from £375 million in 2017, to approximately £2.7 billion at present.
LendInvest’s (LON: LINV) share price performance
LendInvest’s shares ended at GBX 215.00, up by 2.87 per cent on 16 August, following the news. The company’s initial listing price on AIM was GBX 186.00 in July, thus netting a return of 15.59 per cent since listing.
The company’s market cap stands at £295.45 million as of 16 August. It had an implied market cap of £255.6 million upon listing.
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LendInvest’s IPO details
The company’s IPO was estimated to raise about £40 million in capital upon listing, which LendInvest plans to invest into executing its technology roadmap, expand its property finance products and attract new clients to their platform.
LendInvest had earlier planned to go public in 2019, however the company paused its IPO plans back then due to poor market conditions affecting its profits by approximately £2.2 million, and also due to a bad market debut of peer-to-peer lending marketplace Funding Circle.
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Bottom Line
The fintech sector has been buoyant in the past year or so, as businesses and individuals have increasingly adopted technology rapidly since the pandemic. Therefore, the overall tech sector and also the fintech sub sector is well positioned to attract more investment and customers into the sector. LendInvest also stands to gain in view of this macro trend. However, an investor must do their own research prior to choosing to invest in a stock.
