Falling markets have put the brakes on many companies plans to list this year, but a few are braving the bearish conditions to come to market. 

Following fire safety group’s LifeSafe’s debut this week, today saw the arrival of two more companies; Spiritus Mundi (SPMU) , a special purpose acquisition company – or SPAC – seeking acquisition targets in the European healthcare services sector focusing primarily on pathology and laboratory testing, clinical diagnostics, and digital health; and Immediate Acquisition plc, which was readmitted to Aim and is to be renamed Fiinu Plc (BANK) following the reverse takeover. 

Beating the squeeze

Fiinu is a fintech company whose main product is the Plugin Overdraft, an “unbundled” overdraft solution that uses the Open Banking system to offer customers an overdraft facility without them having to switch current accounts.

The product – which has been granted a deposit taking licence by the FCA – will give customers that currently face difficulties obtaining an overdraft access to affordable credit rather than using expensive payday lenders. As overdrafts do not negatively impact a consumer's credit score the Plugin Overdraft will also allow customers to build their credit rating.

The company has now entered a mobilisation period in which it will operate with a total deposit restriction of £50,000 whilst building up the operation, including recruitment and infrastructure investment. The company raised £8m before expenses and said it plans to seek further funding once its mobilisation period is complete. 

Over the last three years Fiinu points out that banks have withdrawn overdraft facilities worth £10bn, leaving 16.5m former overdraft users without access to unarranged borrowed at a time when inflationary pressures are seeing many households struggling to make ends meet. 

According to Fiinu’s research, using alternative methods like payday lenders results in an average 10% drop in credit scores, making it significantly harder to obtain future credit such as mortgages. In a survey it conducted in 2019 it found that 53 of respondents would use an unbundled overdraft.

Aquis bucks IPO slowdown

So far this year, only 26 companies have floated on London’s main lists, a 45% drop on 2021, raising just £595m, 94% lower than last year. Although market conditions have led some companies to delay listing plans, broking industry sources suggest some that had been planning to press ahead have been held up by compacity constraints at the regulator. 

One beneficiary has been the next-generation Aquis Stock Exchange (AQSE) - owned-by Aim- and AQSE-listed Aquis Exchange (AQX) - which has bucked the new listing trend, bringing 11 companies to its market this year with another, investment firm Macaulay Capital, due to list soon. 

AQSE is now home to more than 100 companies, including 18 in its premium Apex segment which can now be traded on Hargreaves Lansdown, the UK’s largest retail investment platform. That milestone is expected to improve liquidity and enhance the attractiveness of the growth market to more companies looking to raise capital.