Funding Circle float price 'prudent' says chief executive

The chief executive of peer-to-peer lender Funding Circle on Thursday defended the high price of its stock market flotation last October as he reported strong growth in lending and a launch into Canada.

Samir Desai’s business was priced at 440p a share on the float but plunged as low as 254p in the following months, angering shareholders.

“We had offers to buy us on the private market that were way higher than we floated at,” said Desai, left. “From my perspective we priced the IPO prudently.”

Revenues last year raced up 55% to £141.9 million although heavy investment and £15 million in IPO costs meant pre-tax losses widened from £36 million to £50.7 million, as expected.

Funding Circle lent £723 million to UK small and medium companies, more than all the high street banks put together, he said.

Shares gained 8p to 359p.