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November 16, 2016

First UK crowdfunded fintech makes successful LSE IPO

SaaS based company offers accounting software and mobile applications.

By James Nunns

Edinburgh fintech firm FreeAgent made a successful debut on the London Stock Exchange.

The accounting software provider raised £10.7 million in what was the first ever UK initial public offering on an equity crowdfunded company.

The company, which provides cloud-based Software-as-a-Service accounting software and mobile applications that are designed for UK micro-businesses, achieved a market capitalisation of £34 million.

FreeAgent is the latest company to join the now 300 plus strong list of technology companies that are quoted on the London Stock Exchange, highlighting the UK’s ability to create, fund and support high growth companies in the sector, the LSE said.

FreeAgent joins companies such as Worldpay, which was £2.48bn in the largest fintech IPO of 2015 and second largest IPO on London in the last decade.

According to LSE, technology companies that have floated in 2016 have shown strong performance post-IPO, up 64% on average.

James Clark, Business Development – Tech and Life Sciences, London Stock Exchange said: “This IPO showcases that London’s markets are open, willing and able to fund high growth fintech businesses.

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Ed Molyneux, CEO, FreeAgent.

Ed Molyneux, CEO, FreeAgent.

“It also highlights that AIM is a market for the whole of the UK, supporting ambitious companies from every region of the country, including Scotland. The significant capital raised on AIM this year is a clear sign of the market’s enduring capacity to connect to dynamic companies to permanent institutional and retail capital.“

FreeAgent is the first UK IPO of a company that had previously raised growth capital via equity crowdfunding. In July 2015 it raised more than £1.2m from over 700 investors on Seedrs, a UK crowdfunding platform.

Ed Molyneux, CEO, FreeAgent said: “We are very pleased to have today been admitted to trading on AIM – this is a transformational event for FreeAgent. I am delighted by the interest shown in FreeAgent by investors, resulting in our successful placing, and equally delighted to welcome on board our new shareholders.

“Our entry to the AIM market is a positive step that marks the next phase of FreeAgent’s development as we progress our growth strategy. We look forward to our future as a quoted company with confidence.”

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