Guarantor loans provider Amigo set to list on London Stock Exchange

The valuation is based on the share offer price of 275p and will be listed on the London Stock Exchange on July 4.

Amigo was founded in 2005 and has since grown to become the UK’s largest provider of guarantor loans, with approximately 88 percent of the UK’s market share. Under the guarantor loans system, a friend or family member with a stronger credit history than the borrower guarantees the loan.

Some critics of the model have warned guarantors may have a poor credit rating themselves or feel obliged by the bonds of family or friendship.

Amigo provides a single product – a guarantor loan at a single APR of 49.9 percent, with a customer base of around 182,000.

Glen Crawford, chief executive at Amigo, said: “We are delighted with the level of support and interest we have received from our new investors. We look forward to further growth and success as a listed company and helping even more people who need alternative finance options.”