A provider of bridging loans and development finance plans to launch an initial public offering on London’s AIM market.
Vector Capital aims to raise £3.1m through the stock exchange float at the end of December. The deal is expected to value the company at £16m.
Vector makes real estate loans to small and medium-sized businesses, mostly for bridging finance, land development and property acquisitions, and had a loan book of £34.7m across 61 loans as of the end of September. The company’s loans are usually for 12 months and carry fixed interest rates of 11%-14%.
Founder and chief executive Agam Jain said: “We have been a trusted lender by brokers for more than 20 years… The successful fundraising and admission to AIM will enable us to increase our lending power and satisfy the demand for fully secured business loans in the SME market, taking the business to its next stage of growth.”
Allenby Capital is acting as Vector’s nominated adviser and broker.
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