Shares Of Funding Circle Decline On First Day Of Trading On The LSE


Today, Funding Circle, a London fintech hopeful, took a hammering during its first day of trading on the London Stock Exchange, dropping at one point over 24 percent below its initial price target.

The shares in the peer-to-peer lender dropped by as low as 334.5p in mid-morning trading, down from the listing price of 440p.

Yesterday, the company also fared badly in conditional trading, where the stock was trading for as low as 396p at a 9.8 percent decline in price.

Last week, Funding Circle reduced its target price range to between 440p and 460p per share, having previously set it at between 420p to 530p. During early test trades last Friday, the company was valued at £1.5 billion.

As of midday on the main market of London, the share price of Funding Circle was at 380p.

The fintech float comes as Aston Martin also faltered on its stock market debut today after its shares declined to as low as £17.75 this morning from the initial pricing of £19 per share.

Last month, Samir Desai, the chief executive of Funding Circle confirmed its intention to float. He said that the business had garnered a lot of interest, however, he said it was not getting its hopes too high.

He stated: “We know where we are going in the long term, and we’re not naive – we know there will be ups and downs, but as long as we stay focused on the long-term we will be happy.”

The chief executive of industry analytics firm AltFi Data, Rupert Taylor, stated: “Fintech is already an incredibly diverse sector covering a huge spectrum of different business models. As such, extrapolating the daily share price movements of the most recently floated company is unlikely to deliver meaningful insight.

He added: “However, as a provider of comparable loan performance metrics, AltFi Data would point out that it is impressive that Funding Circle have maintained the impressive performance of the loans they originate even as their lending volumes have grown to the size of a significant market participant. This is a clear sign that they have identified a durable lending model.”