PensionBee, a loss-making company behind the pensions consolidation app of the same name, has become the latest UK-based fintech to announce plans for a London IPO. The company, run by 35-year-old ex-Goldman Sachs and Morgan Stanley investment banker Romi Savova, yesterday announced it will sell its shares within a range of 155p to 175p, valuing the company at up to £384 million. At the lower end of the range PensionBee would be worth £346 million.
The listing is planned for the high growth segment of the London stock exchange and would value chief executive and co-founder Savova’s 36.2% stake at £140 million. However, Ms Savova’s newfound status as a multi-millionaire will at least initially only be on paper. She and PensionBee’s other directors and senior management with shareholdings have said they will not sell any of their stock through the IPO.
Ms Savova, who co-founded PensionBee alongside Jonathan Lister Parsons, the company’s chief technology officer, was motivated by difficulties she encountered when trying to transfer a pension with a previous employer. The app manages similar transfers easily for users, who just need to provide the name of an old pension provider and some basic information.
Once pensions are consolidated with PensionBee, users can also pick new pension funds to invest them in. PensionBee has, however, like many fintechs whose business models tend to rely on scale, been loss-making since its launch. Last year a £13.5 million loss resulted from revenues of £6.3 million.
But user numbers are growing quickly and had reached 137,000 by the end of March, a 77% improvement on a year earlier. Assets under administration are also up 123% to £1.65 billion.
The IPO aims to raise £55 million by selling new shares, with the funding earmarked for investment in upgrading the company’s technology as well as marketing campaigns to fuel further growth.
PensionBee customers have been offered the chance to buy into the company’s IPO, which over 12,000 have taken up. Ms Savova commented:
“We’re delighted that so many of our customers wish to join us as shareholders and look forward to welcoming all of our new investors as important stakeholders in our business.”
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