Retirement savings app PensionBee looking to raise £60m and hit a valuation of £300m as it confirms plans to float in London
- PensionBee looking to raise up to £55m by issuing new shares
- Up to £5m to come from sale of existing shares held by minority shareholders
- Founders, directors and senior managers won’t sell any of their shares
- The deal could see founder bag a £135m windfall if its hits valaution of £300m
- Company did not reveal offer price; flotation expected to take place in April
Retirement savings app PensionBee is looking to raise up to £60million by selling new and existing shares as it confirmed plans to float on the main market of the London Stock Exchange.
The London-based company, which first announced its intention to go public last week, said that up to £55million will be raised by issuing new shares.
None of its founders, directors or senior managers will be selling their shares, although ‘certain’ existing small minority shareholders will, with the offer expected to raise up to £5million.
Co-founder Romi Savova, who owns a 45% stake in PensionBee, won’t be selling her shares
The company said it has not yet set an offer price for the shares, although it is reportedly aiming for a valuation of at least £300million.
Co-founded by Romi Savova and Jonathan Parsons in 2014, PensionBee is behind a smartphone app that lets people consolidate their pension savings into one pot and manage them digitally.
Savova owns a 45 per cent stake in the company, which means she’s sitting on £134million worth of shares if it hits its reported valuation target, while Parsons, who is the company’s finance boss, owns a 7 per cent stake potentially worth £21million.
PensionBee is the last of a raft of companies recently announcing plans to list on the stock market, including food delivery app Deliveroo, reviews website Trustpilot and online greeting cards retailer Moonpig.
It is looking to apply for admission to the ‘high growth segment’ of the main market of the London Stock Exchange, with the IPO expected to take place in April.
London IPOs during the pandemic
Deliveroo – £7.6bn
Dr Martens – £5.8bn
The Hut Group – £4.5bn
Moonpig – £1.5bn
Trustpilot – £1.1bn
Institutional as well as small investors will be allowed to buy shares in the company.
Over 9,000 eligible PensionBee customers have already registered so far for the offering, up from 8,000 that had expressed an interest last week, according to PensionBee.
Savova, who is also the chief executive, said going public had always been part of their strategy.
‘There is a significant growth opportunity for PensionBee, as a result of the acceleration of the shift to digital, the frequency of individuals moving jobs and the increased duration of working life,’ she said.
‘Our intended IPO will allow us to improve on this commitment by continuing to invest and innovate, driving the growth of our customer base and giving more people control and clarity over their retirement savings.’
Savova was born in Bulgaria and raised in South Africa. After stints at Goldman Sachs and Morgan Stanley banks, she had the idea for the business after struggling to move her own pension pot when switching jobs.
PensionBee’s app has around 130,000 active customers and now manages £1.5billion worth of assets.
It believes some 40million pension pots could benefit from consolidation.