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Fellow Finance Plc (”Fellow Finance” or ”Company”) is planning an initial public offering (”IPO”) and a listing of its shares on the First North Finland marketplace operated by Nasdaq Helsinki Ltd (“Listing”).
Established in 2013 and launching operations in 2014, Fellow Finance is an internationally active and growth-oriented FinTech group that provides crowdfunding services. The Company specialises in offering, to private individuals and businesses and on its crowd-funding platform, financing and investing solutions that are an alternative to traditional bank financing. The service most central to the Company’s business is the leading² Nordic loan-based crowdfunding and peer-to-peer lending platform maintained by the Company. The Company has facilitated peer-to-peer loans to consumers as well as loan-based crowdfunding and invoice financing to businesses in a total amount of more than EUR 295 million³, serving nearly 430,000 users from around 50 different countries. Fellow Finance’s net sales consist mainly of commissions and interest income. Taaleri Plc is the largest owner of the Company, with an ownership of 45.7 percent before the IPO.
In 2017 Fellow Finance’s net sales was EUR 8.7 million, growing by 55 percent from the previous year. The good development continued in the first half of 2018, as the Company’s net sales grew by 43 percent compared to the same period of the previous year.
The objective of the planned IPO and Listing is to finance international growth and expansion of operations. Further objectives for the Listing are to increase the number of share-holders, give the Company access to capital markets, and in-crease the liquidity of the Company share and awareness of the Company. The Listing will also allow the more efficient use of shares as e.g. means of payment in eventual corporate acquisitions and in the remuneration of employees. The gross proceeds that the Company will receive from the Share Issue are estimated to amount to a total of approximately EUR 10.0 million, before IPO related fees and expenses.
Institutional investors consisting of certain funds managed by OP Fund Management Company Ltd and Sp-Fund Management Company Ltd as well as Prior&Nilsson Fund and Asset Management Ltd have given their pre-commitments to subscribe for shares and agreed to become cornerstone investors in the IPO. Additionally, the Company’s Chairman Kai Myllyneva, and members of the Board of Directors Esa Laurila and Jorma Alanne given their pre-commitments to subscribe for shares in the IPO. Total subscription commitments amount to approximately EUR 4.6 million.
"We have created an advanced marketplace where we unite businesses and individuals looking for financing in Finland, Sweden, Germany and Poland with a global pool of investors looking for returns. Borrower customers are provided with peer-to-peer loans, business loans and invoice financing at market terms. For investor customers our services enable diversification of assets into an alternative asset class with minimum need of time and effort.
Crowdfunding has experienced strong growth, both globally and in Europe . We see a number of growth drivers in the market including opportunities arising from technical advances, the emergence of the platform economy in several business areas, opportunities arising from further development of machine learning, low expected returns on traditional forms of investment and consumer preferences for ease of use and fast availability of services.
We want to continue our strong and profitable growth in this market of rapid change and become the leading marketplace lending platform for people and businesses in Europe.”
For further information please contact, Jouni Hintikka, CEO, Fellow Finance Plc, Tel. +358 40 5855 009, jouni.hintikka (at) fellowfinance.fi
¹Measured by amount of financing facilitated at 1 August 2018. Source: Altfi Data (data accessed on 1 August 2018).
²Measured by amount of financing facilitated at 1 August 2018. Source: Altfi Data (data accessed on 1 August 2018).
³The amount of facilitated loans includes loans facilitated by the Company’s subsidiary Lainaamo Oy since June 2013 as well as loans facilitated by Fellow Finance since the launch in March 2014. Since May of 2015, as Lainaamo became a part of the group, the loans applied for through Lainaamo have been administered on the Fellow Finance platform. Source: University of Cambridge, Judge school of Business. The 3rd European Alternative Finance Industry Report https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alternative-finance/downloads/2018-ccaf-exp-horizons.pdf