LONDON (Alliance News) - Morses Club PLC, the doorstep lender with 200,000 customers in the UK, on Wednesday said it will float on London's AIM with a value of GBP140 million by market capitalisation.
In a statement, Morses said its initial public offering was priced at 108 pence per share.
Perpignon Ltd, the selling shareholder controlled by R Capital, which provides turnaround and growth funding to UK businesses, is raising GBP68.5 million by selling down its holding in Morses Club, and will be left with a 51% stake.
Directors also will own about 5.1% of the company, which will have 129.5 million shares in issue with a free float of 44%.
Morses said its adjusted pretax profit increased by 29% to GBP16.8 million in the financial year ended February 27. The company intends to distribute the majority of adjusted earnings to shareholders in the form of dividend payments.
"The positive reception we have had from investors and the interest they have shown in the home collected credit market has been very encouraging. We are excited about becoming a listed company and embarking upon this next stage in our corporate evolution," Non-Executive Chairman Stephen Karle said in a statement.
Based on unaudited management accounts, credit issued for the thirteen weeks ended March 26 was 20% higher compared with the corresponding period in the prior year, Morses said. Excluding acquisitions, like-for-like credit issued increased by 12% for the thirteen-week period.
Morses said it agreed on Monday last week to buy a loan book consisting of GBP1.9 million of gross receivables, and continues to "actively review" potential acquisitions.
Numis Securities Ltd is acting as nominated adviser and joint bookrunner to Morses Club, with Panmure Gordon (UK) Ltd also joint bookrunner. Deloitte Corporate Finance is acting as the company's financial adviser.
The company's shares are expected to begin trading on AIM on Thursday next week.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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