PensionBee Group plc has raised £20 million through the issue of new shares in the company to power expansion in the United States.
The placing, at a price of 185 pence per share – mirroring the closing price on Wednesday – represents approximately 4.8% of the current issued ordinary share capital of the company.
The placing was oversubscribed and was strongly supported by both existing and new institutional investors, PensionBee said in a notice to the London Stock Exchange.
Meanwhile the London FinTech, which allows people to combine their pensions online, reported Q3 revenue of £9m, up from £6m a year earlier.
The firm expects to achieve EBITDA break-even in 2024 after posting its second consecutive quarter of positive adjusted EBITDA for the third quarter at £1m.
Assets under Administration rose 41% to £5.5 billion while customer numbers are up 37,000 to 260,000.
Pensionbee launched a US subsidiary this summer via a partnership with State Street’s investment management division.
“We are pleased to see a positive consumer response to our marketing approach and to have developed local features to facilitate easier rollovers,” said CEO and founder Romi Savova.
“The opportunity we have ahead of us, to help millions of Americans enjoy a happy retirement, is transformational for the next decade of PensionBee’s growth.”
Pensionbee, founded in 2014, floated in London in 2021 and has seen its stock price more than double this year.