Vannin aims for £700m float after Aston Martin setback

LEGAL funding firm Vannin is moving ahead with its float despite a tough time for stock market offerings.

Last week, financial technology firm Funding Circle and car maker Aston Martin saw their share prices dive after recently floating on the London stock market.

Vannin is pressing on with its float, with a valuation of up to £700 million – significantly lower than the previously reported £1 billion that the company was hoping to achieve.

It has already had to delay the publication of its prospectus after telling investors it expects to lose millions of pounds on a case it is funding against Costa Rica. Vannin’s prospectus was sent to investors last week but brokers at Jefferies and Barclays have indicated Vannin is likely to float at a valuation of between £600 million and £700 million.

City sources said trading in Vannin’s newly floated shares is likely to begin in a couple of weeks if the float manages to stay on track. Interest in legal funding has been fuelled by a deluge of post financial crisis legal actions brought by shareholders of bailed-out banks such as Lloyds Banking Group and RBS.

Investors, though, are in a cautious mood following Funding Circle and Aston Martin’s poor share price performance since floating. Funding Circle – which allows ordinary savers to pool their money to provide loans to small and medium-sized companies – suffered one of the worst first-week performances for a British float. The shares closed on Friday at 342.7p after listing at 440p.

Aston Martin, meanwhile, closed at £17 after pricing its shares at £19.