Guarantor loans business Amigo Holdings is planning a London initial public offering (IPO), it announced today.
The Bournemouth-based lender offers loans of £500 to £10,000 to those with poor credit histories, provided a friend or family member acts as a guarantor.
Amigo’s loans come with a representative 49.9 per cent annual percentage rate of charge. If the borrower fails to repay the loan the guarantor is then liable for the debt.
The company did not say how much it was planning to raise or when the float will take place.
Amigo, which was founded in 2005, has grown its loan book from £143m per annum to £470m per annum over the last four financial years.
Its adjusted profit after tax grew from £46m to £72m from the 2016 financial year to the 2018 financial year.
Following admission it is expected that Amigo will have a free float of at least 25 per cent of its share capital.
Amigo chief executive Glen Crawford said: “Since inception, Amigo has helped over 300,000 borrowers to obtain funding. We look forward to being able to further deliver on our commitment to helping those people in the UK who otherwise have no or very limited access to mainstream lending."
JP Morgan, RBC Europe and Macquarie are the banks underwriting the float.