Business

Sub-prime lender Amigo to list with £1.3bn valuation

Amigo Loans will be valued at over £1.3 billion with it floats on the London stock exchange next week

AMIGO, the lender which provides finance to individuals with poor credit histories, will be valued at over £1.3 billion with it floats on the London stock exchange next week.

The company provides loans of between £500 and £10,000 for up to a year at a rate of over 40 per cent, with repayments guaranteed by someone connected to the customer, such as a friend or family member.

Amigo is set to list on the London stock exchange at a price of 275p per share.

Founder James Benamor, who started the firm when he was 21, will sell part of his stake through the listing.

Mr Benamor's company Richmond Group Limited will sell close to 119 million shares through the listing, making proceeds of around £326.8 million.

Amigo has a net loan book of £647 million and around 182,000 borrowers.

Glen Cawford, chief executive of Amigo, said: "Today is a significant milestone for all of us at Amigo.

"We are delighted with the level of support and interest we have received from our new investors.

"We look forward to further growth and success as a listed company and helping even more people who need alternative finance options."

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