Funding Circle pre IPO offer

dont_use_vistaprint

What do people think , its min £1000, worth a punt or is it looking like a really bad idea with regulation looming

tubsolard

Intermediaries offer ends tomorrow, I'm also interested to hear whether it might be a good short or long term investment?

Bacman

Higher rates = risk. Lending to people with bad credit ratings can only mean less chance they will repay their debt and therefore mean your interest gained will not be what is expected, yes?



If you are prepared to risk losing the capital on the basis of maybe getting a higher interest (!) then that can only be daft as you could be out of pocket ultimately. There is no such thing as "get rich quick" without heavy risks or being scammed. A fixed rate bond with a reputable bank is a safe option and gives a guaranteed fixed rate of interest. You can get 2.5%-2.7% that way by a 5 year bond.

Alexland

I don't understand what makes it such an exceptional company worthy of direct investment?

SlickMongoose

It's a loss making, cash burning company. If you really feel the need to invest in individual companies (and I don't recommend it, except as a hobby with a small % of your portfolio if you really enjoy it) then I strongly suggest sticking to profitable ones.

Alexland

SlickMongoose wrote: »

It's a loss making, cash burning company. If you really feel the need to invest in individual companies (and I don't recommend it, except as a hobby with a small % of your portfolio if you really enjoy it) then I strongly suggest sticking to profitable ones.

Reading some of the press coverage this evening it does remind me of some of the IPOs occurring at the height of the dotcom boom. There's definitely growing signs of euphoria in the market.

Alex.

bxboards

I rarely buy shares directly, but even as someone who is heavily invested in P2P I can't see the appeal of this IPO.

In some ways it reminds me a little of the ridiculous valuations given to Wonga when they were mooting an IPO a few year back. Similar markets...lending to borrowers who cannot obtain mainstream finance. Can only see one way for these shares to head long term.

I used my last bargepole recently for Lendy Wealth..I'm off for a new one for this IPO.

bowlhead99

bxboards wrote: »

I used my last bargepole recently for Lendy Wealth..I'm off for a new one for this IPO.

I thought the phrase was "I wouldn't touch it with a bargepole!".

As such, you don't actually use up your bargepoles when you come across such opportunities.



Unless I'm behind the times and the new phrasing is "I was so unimpressed with the opportunity that in disgust, I took my bargepole down to the local commercal waste disposal facility"

short_butt_sweet

bowlhead99 wrote: »

I thought the phrase was "I wouldn't touch it with a bargepole!".

As such, you don't actually use up your bargepoles when you come across such opportunities.

does one even need to own a bargepole?

"i wouldn't touch it with a bargepole, even if i had a bargepole, which i don't, because i live in a house, not on a boat."

aroominyork

Do we know whether the funds raised by the IPO will be used to i) let the founding investors take the money and run, or ii) provide more loans above the amount that p2p investors are interested in covering?

bowlhead99

aroominyork wrote: »

Do we know whether the funds raised by the IPO will be used to i) let the founding investors take the money and run, or ii) provide more loans above the amount that p2p investors are interested in covering?

Prospectus said:

Reasons for the Offer and use of proceeds
The Company intends to use the net proceeds from the issue of the New Shares to enhance its balance sheet position. The Directors and the Proposed Director believe this is important for the following reasons:


• to further engender trust in the Group’s business with Investors, Borrowers and regulators;
• to support the Group in pursuing growth over profitability in the medium term; and
• to provide strategic flexibility and create the ability to take advantage of opportunities either in current markets or new geographies.


The Directors and the Proposed Director believe that this is an appropriate time to bring the Groupto the public market, reflecting the robust foundations established for future growth. The Directors and the Proposed Director believe that the Offer will:

• increase the Group’s profile and brand awareness;
• demonstrate the maturity, transparency and governance of the business to Borrowers, Investors and employees;
• assist in recruiting, retaining and incentivising key management and employees;
• provide a stable base of long term Shareholders and give the Group access to a wider range of capital-raising options; and
• provide future liquidity to Shareholders.


The sale of Existing Shares will provide the Selling Shareholders with an opportunity for a partial realisation of their shareholding in the Company.