PensionBee's IPO to value fintech at £346m

PensionBee is looking to raise £55m in its upcoming Initial Public Offering (IPO), implying a  £346m valuation, according to a statement from the company.

In the 12 months up until 31 March 2021, PensionBee has seen assets swell 123 per cent year on year to £1.65bn. Its active customer base meanwhile(those using the service or in the process of using the service), grew by 77 per cent year on year to approximately 137,000 and customer actively investing (i.e they have transferred assets) grew by 81 per cent year on year to approximately 81,000.

All being well, PensionBee will have a £55m pot of cash after the IPO to take its next growth steps for marketing as well investments in tech.

Romi Savova, Chief Executive Officer of PensionBee, said: "An IPO has always been part of PensionBee's corporate trajectory, and we are extremely proud to be reaching this milestone.”

“The flotation will further our vision to help millions of consumers look forward to a happy retirement through our technology platform and dedicated customer service offering that make pensions simple.” 

So far the firm has seen 12,000 of its own customers express interest in the IPO.

"We're delighted that so many of our customers wish to join us as shareholders and look forward to welcoming all of our new investors as important stakeholders in our business," Savova said.

Pensionbee makes money via the level of assets it administers. Pensionbee doesn't actually invest on behalf of its customers but rather it acts as a platform while model portfolios in low-cost ETFs from investment giants like L&G and BlackRock do the investment leg work. Nonetheless, it earns a cut. 

Therefore it makes money in three ways. A rise in markets, broadly. More customers adding legacy pensions to its platforms. And customers adding ongoing pension contributions. The pandemic has most likely been a bullish trend in all three.