PensionBee valued at £346m ahead of IPO

PensionBee valued at £346m ahead of IPO
Romi Savova, founder and chief executive of PensionBee

Consolidator PensionBee could be valued at between £346m and £384m when it floats on the London Stock Exchange.

In an announcement this morning (April 12), PensionBee said a price range for the initial public offering has now been set at 155p to 175p per share, implying an estimated market capitalisation of between £346m and £384m. 

The IPO is made up of an offer to institutional investors (the Institutional Offer) and an offer to eligible customers of PensionBee (the Customer Offer).

According to the firm, more than 12,000 customers have signed up to participate in the IPO so far.

The company will now offer buyers 35.5m new shares as well as the sale of up to 2.8m existing shares by certain small minority shareholders.

Through this the company intends to raise gross proceeds of £55m to support future growth, by “funding future investment in PensionBee's advertising and marketing initiatives, its technology platform capabilities and for general corporate purposes”.

None of the founders, directors or members of senior management are selling their shares.

Romi Savova, chief executive officer of PensionBee, said: “An IPO has always been part of PensionBee's corporate trajectory, and we are extremely proud to be reaching this milestone.

“The flotation will further our vision to help millions of consumers look forward to a happy retirement through our technology platform and dedicated customer service offering that make pensions simple.

“We're delighted that so many of our customers wish to join us as shareholders and look forward to welcoming all of our new investors as important stakeholders in our business."

Under its lock-up terms, investors will not be able to sell for 180 days, while the company’s executive directors and founders have agreed to stay in for 720 days.

The firm said it had continued its growth trajectory in line with expectations for the period to March 31, 2021. 

Its assets under administration grew by 123 per cent year on year to £1.65bn. 

Meanwhile, active customers grew by 77 per cent year on year to approximately 137,000 and invested customers grew by 81 per cent year on year to approximately 81,000.

News of the pension provider’s IPO intentions first broke in November 2020, following a period of strong performance which had accelerated management’s plans. 

Last month, the firm cemented these intentions, saying the IPO will allow it to invest in future growth.

Founded in 2014, the pension consolidator was one of the first platforms to join the Association of British Insurers, following Hargreaves Lansdown and Vanguard.

At the time the ABI stated it was looking to reflect the “changing nature of the long-term savings market” and pension consolidators have since been recognised as a potential threat to the traditional advice market.

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