London Stock Exchange welcomes Edinburgh fintech FreeAgent’s IPO

  • Accounting software provider raises £10.7 million on AIM
  • First ever UK IPO of an equity crowdfunded company
  • Reinforces London’s status as leading venue for technology company fundraising

London Stock Exchange today welcomes the AIM flotation of FreeAgent, a provider of cloud-based Software-as-a-Service accounting software and mobile applications designed specifically for UK micro-businesses. The Edinburgh-based company raised £10.7 million at IPO, with a market capitalisation of £34 million.

To celebrate the listing, Ed Molyneux, CEO, FreeAgent and staff from the company opened trading on London Stock Exchange this morning.

The company is the latest to join more than 300 technology companies quoted on London Stock Exchange underlining the UK’s ability to develop, fund and support high growth companies in the sector. Most notably:

  • In October last year, Worldpay raised £2.48bn, the largest fintech IPO of 2015 and the second largest IPO on London in the last decade
  • It joined Sophos Group, the largest ever cyber security IPO, as well as the first ever ETF tracking the cyber security industry, both also listed in 2015
  • Technology companies that floated in 2016 have shown very strong performance post-IPO performance, up 64 per cent on average
  • AIM companies that floated this year have also performed very strongly, up 33 per cent on average

FreeAgent is the first UK IPO of a company that had previously raised growth capital via equity crowdfunding, demonstrating the growing importance and relevance of an increasingly well connected funding ladder for ambitious British businesses. In July 2015, the company raised more than £1.2 million from over 700 investors on Seedrs, one of the UK’s leading crowdfunding platforms, giving it the funding platform from which to progress towards today’s IPO.

Mark Fahy, Head of UK Small and Mid-Cap Companies, London Stock Exchange said:
“This IPO showcases that London’s markets are open, willing and able to fund high growth fintech businesses. 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.“

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.”

Jeff Lynn, CEO and Co Founder of Seedrs said:
"We would like to extend our congratulations to Seedrs alumnus, FreeAgent, following today's float on AIM. To our knowledge this is the first time an equity crowdfunded company has gone on to IPO, and it’s great that the shares owned by our investors will now have liquidity on the stock exchange. As the early stage investment space matures in the coming years, we look forward to seeing many more Seedrs companies floating or exiting. We have always believed this asset class will be very fruitful for investors with diverse investment portfolios, and FreeAgent's IPO is an early example of that." 

 

- Ends -

 

For further information: 

Media

 

Tom Gilbert

+44 (0)20 7797 1222

newsroom@lseg.com

 

Notes to editors:

For more information about FreeAgent: www.freeagent.com

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