Urban Exposure, a non-bank provider of development finance, has started trading on the alternative segment (AIM) of the London Stock Exchange after a £150 mln (€172 mln) fundraising plus shares owned by management enabled it to launch with a market capitalisation of £165 mln.
The London-based firm, which specialise in residential property development finance, raised gross proceeds of £150 mln at a placing price of 100 pence per share. The floatation marks the largest AIM listing so far this year.
'We are delighted to begin trading on AIM today after an excellent reception during the IPO process,' said Randeesh Sandhu, chief executive of Urban Exposure.
'Urban Exposure has a clear strategy to provide finance to residential developers around the UK and we look forward to utilising the funds raised as a balance sheet for lending while continuing to grow our third-party asset management business.
'To deliver the government's housebuilding target of 300,000 homes per year, another £20.8 bn of development finance is needed per year for the next decade - more than double the current market size. Building on our strong track record and aligning ourselves with the UK government's housing strategy, Urban Exposure is well placed to help plug this funding gap,' Sandhu added.
Four years ago, the alternative lender abandoned plans for a stock exchange listing citing 'the prevailing IPO backdrop' in a climate of several IPO cancellations.
Urban Exposure was established in 2002 and evolved into a development finance provider in 2009. Its remit includes development funding for residential, mixed-use, student accommodation, retirement living and PRS schemes with a more recent focus on affordable housing and aligning with government initiatives to reduce housing shortages.