Mode files for £7.5m LSE IPO

UK FinTech group Mode Global is set to launch an Initial Public Offering (IPO), seeking to raise around £7.5 million.

The move, which is subject to approval by the Financial Conduct Authority, forms part of the company’s plans to raise its profile and provide capital for growth, including funding new digital banking services.

It is also planning to use the proceeds from the float to fund regulatory capital for an E-Money Institution (EMI) licence, and a European roll-out of its range of services covering banking, payments, investment, loyalty and digital assets.

The final offer price is expected to be £0.50. It is targeting a free float of at least 25 per cent of issued share capital immediately following admission. Each of its existing major (10 per cent plus) shareholders will agree to customary lock-up arrangements in respect of their shares for a period of time following admission.

Existing shareholders include founder Jonathan Rowland (31.78 per cent), Ruskin Capital (17.60 per cent), David and Caroline Williams (5.91 per cent) and Bonderman Family (4.59 per cent). Other existing investors include the co-founder of Twitter, Biz Stone.

In a statement, Mode said that after successful admission to the London Stock Exchange, it would seek to "launch a novel payments solution powered by Open Banking that eliminates the need for cards and operate a significantly more diversified revenue model than the challenger banks, including both 'regular' FinTech revenue streams in addition to a range of more stable and high value revenue sources".

It will also develop a loyalty and rewards engine that builds on banking, financial and payment related insights.

The company has so far rolled out an app which allows users to manage their traditional and digital assets in one place, including Bitcoin Jar cryptocurrency accounts, with Business Payments functionality on WeChat and Alipay, which provides payment processing services for UK and European businesses to tap into the Chinese market.

The company has existing partnerships in place with Tencent (WeChat) and Alipay.

Jonathan Rowland, Mode’ founder and executive chairman, said it: "Demonstrates our ambition, as well as confidence in our ability to leverage technology and talent to accelerate the digitalisation of finance.

"We are seeing an accelerated transition to online and mobile payments in the new post-COVID era, and Mode plans to leverage this by offering superior financial services for consumers and businesses alike."

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