Vector Capital announces intention to float on AIM

Vector Capital plc, a commercial lending group that offers loans to businesses in the UK, has announced its intention to seek admission to the AIM market of the London Stock Exchange.

The company has also announced a conditional placing of 8,052,895 new Ordinary Shares, at a price of 38 pence per share to raise gross proceeds of £3.1 million.

Admission and commencement of dealings on AIM are expected to take place at 8:00 a.m. on 29 December 2020, under the ticker VCAP. Based on the Placing Price, the market capitalisation of the Company will be £16.0m on Admission. On Admission, the Company will have 42,052,895 Ordinary Shares in issue.

The proceeds of the placing will be used by the company to further grow its loan book and for general working capital purposes.

Allenby Capital is acting as nominated adviser and broker to the company.

The loans provided by the Vector Capital are generally for a 12-month term with fixed interest rates of between 11 and 14%.

The company’s loans to its borrowers are financed primarily from a combination of its own resources and debt facilities. The debt facilities are primarily provided by Shawbrook Bank totalling £15.0m and Aldermore Bank totalling £10m.

As at 30 September 2020, the Company has a loan book of £34.7m, with 61 live loans, an average loan size of approximately £0.57m and average loan to value of 49.9%.

Agam Jain, CEO of Vector Capital, said: “Our plans to bring Vector Capital to AIM are founded on a strong track record of organic growth. We have been a trusted lender by brokers for more than 20 years, due to our flexibility, speed and integrity. 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.

“With a robust and scalable IT infrastructure in place to facilitate an increasing loan book, combined with our low overheads and agility, Vector Capital is strongly placed to expand, deliver on its strategy and provide returns to shareholders.”

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