London's Worst IPO Award Has a New Contender
Amigo Holdings had a peak market value of 1.5 billion pounds, and has dropped to about 250 million pounds. It’s a mess that casts a bad light on IPOs.
Family backers.
Photographer: BloombergThe bitter 2018 vintage of British initial public offerings is souring with age. After the dramatic fall of Aston Martin Lagonda Global Holdings Plc and Funding Circle Holdings Plc, yet another shock came on Monday from subprime lender Amigo Holdings Plc, which listed around the same time. The company said the environment was worsening and that its founder and 61% shareholder wanted to sell. Competition to be the most disappointing London IPO of recent years is hotting up.
Amigo’s original listing seemed auspicious. It specializes in so-called guarantor loans underwritten by friends or family. The colorful founder, James Benamor, and others sold 25% of the company on its debut. The listing didn’t struggle to find committed long-only buyers, so it didn’t have to rely on capricious hedge funds. Funds run by Neil Woodford, the renowned stock-picker then still riding high, and Invesco Ltd. bought a combined 11% stake, having already invested in Amigo’s listed peers such as Provident Financial Plc. JPMorgan Asset Management purchased 4% (JPMorgan Chase & Co was also one of the banks on the deal).