Davenham aims for £40m flotation
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.A niche merchant bank that provides funding for small businesses will list on the stock market next month, despite the ongoing gloom being experienced by its larger rivals.
The Davenham Group aims to raise between £20m and £25m to fund expansion, and is expected to have a market capitalisation of about £40m. Its brokers are Beeson Gregory.
Colin Davenport, Davenham's chief executive, defended the decision to go ahead with a floatation, saying: "There has been a very large vacuum in the market up until now in what banks offer to SMEs (small and medium-sized enterprises). We don't believe anyone else has the same approach as us."
Most high street banks require SMEs to provide security for loans either via their balance sheets or in the form of assets such as a home.
In contrast, Davenham offers what is calls a more flexible approach. It involves investing in projects, and if the deal fails, Davenham takes on the assets.
The SME market is due to be shaken up by a Competition Commission report next month, following concerns that clearing banks operate a "complex monopoly" in financial services for small businesses.
High Street banks havepriced their loans and other services to SMEs at higher prices than their retail accounts, which some say is due to a lack of competition.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments