Mill Residential REIT is the first UK crowdfunded company to float on a UK stock exchange.
Mill Residential REIT underwent a £2.226 million fundraising round. About £1.5 million of the total was done via crowdfunding though SyndicateRoom. When the company started the fundraising round it said that it aimed to float on AIM once it had completed the fundraise.
72 investors participated in the offer on SyndicateRoom, and the deal was filled after just three weeks, raising over £2.2 million. Its shares were priced at 100p per share and it had a very successful first day of trading with its shares closing at 108.50p.
This IPO marks a milestone for SyndicateRoom and is a great achievement for the platform only 18 months after going live.
Goncalo de Vasconcelos, CEO and Co-founder of SyndicateRoom, commented:
"SyndicateRoom was launched less than 18 months ago and already is a marketleader when it comes to innovation and success. What better example than to have funded the first ever crowdfunded company to list on a UK main stock exchange?
“Mill Residential REIT is the first crowdfunded company ever listed on a main UK stock exchange. Its successful IPO is testament to the innovation that the financial services industry is going through, with SyndicateRoom as the frontrunner of equity crowdfunding.
“Crowdfunding has matured into an accepted part of the UK’s financial landscape and we at SyndicateRoom will continue to connect sophisticated private investors with promising young companies like the Mill Residential REIT.”
Marcus Stuttard, Head of AIM, explained:
"Throughout its almost 20 year history, AIM has always supported innovation of all kinds which is why I’m delighted to welcome the Mill Residential REIT to the market "
David Toplas, Mill Residential REIT CEO, added:
“We are delighted to have successfully joined AIM as the UK’s first ever residential REIT focused on the mainstream, residential property market and are looking forward to delivering our growth strategy. I firmly believe that the Company will be an attractive way for people to invest their pension savings in a familiar asset class of “buy-to-let” property, via a hassle-free format of a tax efficient REIT company share. This sector has regularly out-performed all other real estate asset classes over the last 30 years on a total returns basis and look forward to the future.”
The initial portfolio of the REIT comprises of seven “buy to let” properties located in London and Southern England. The group aims to create a low risk, diversified portfolio of rental properties. The company now has a market cap of £3.5 million. Shareholders will be paid dividends twice a year.
There has been much discussion over exits from crowdfunding campaigns. In order to continuing growing and attracting investors this is an area the industry needs to focus on going forwards. One highly successful exit we saw this year was when the equity crowdfunded company, ReWalk Robotics, floated on the NASDAQ. In the next year as the companies funded by equity crowdfunding mature we expect to see more come to market.