PensionBee IPO

What is PensionBee?

PensionBee is a pension consolidation business which combines and transfers clients’ existing pensions into a new plan. The pensions are then managed by professionals, including Legal & General, BlackRock, State Street Global Advisors and HSBC.

Inside its platform – known as the BeeHive – customers can see their pension balance, projected requirement income and make withdrawals.

The PensionBee IPO: price, fund raising goal and total valuation

PensionBee held its IPO on the London Stock Exchange on Wednesday April 21 2021 under the ticker £PBEE. Shares were priced at 165p – well within the 155-175p range the company was aiming for.

PensionBee’s debut gave it a valuation of $365 million at the time of admission. The offer included the sale of over 33 million new shares and 2 million existing shares – coming to a total offer size of £59.6 million. The money raised will go towards expanding the company’s consumer base in the UK through investment in its platform and marketing activities.

Unconditional trading for the shares opens a week later on 26 April. The fintech has committed to a 180-day lock-up period, meaning shareholders can’t sell stock immediately. The company’s executive directors and founders have a 720-day lock-up.

How to trade PensionBee shares

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How does PensionBee make money?

PensionBee makes money only when a client’s pension is invested, and they can charge an annual management fee. This is then split with the money manager. While other pension providers have other fees, PensionBee only has the one cost.

Is PensionBee profitable?

PensionBee is not currently profitable. Its IPO prospectus revealed the company is making a significant loss. From 2018 to 2020 PensionBee’s net losses surged from £3.1 million to £13.2 million. The main costs for PensionBee are its marketing efforts and customer account managers and staff.

However, its revenue is growing faster than its costs, jumping from £1.4 million to £6.2 million while its. Its assets under administration (AUA) grew 123% year on year to £1.7 billion. The provider added around £100,000 in assets under administration in the first two months of 2021 alone.

What is PensionBee’s business model?

PensionBee’s business model is based around creating an easy, user-friendly platform for pension consolidation. Going forward, its growth plan is based on broadening its UK consumer base and boosting revenues.

In order to improve its profitability, PensionBee is focusing on marketing. It’s planning to use the equity it raised in its IPO to fund its increasing activities – approximately £34 million of the net proceeds will go towards a marketing budget for the next three years. The remaining £10 million will go toward its platform, and the rest toward general operations.

Who are PensionBee’s competitors?

PensionBee’s top competitors include other pension providers West Yorkshire Pension Fund, Smart Pension, Ruffer and Hargreaves Lansdown.

Who owns PensionBee?

The owner of PensionBee is Romi Savova, who after working in the financial industry found combining her old pensions to be difficult. So, she came up with PensionBee with co-founder Jonathan Lister Parsons. They secured £1 million in investment and launched in 2016.

Romi Savova will be worth approximately £140 million following the IPO.

Who are the directors of PensionBee?

Romi Savova, Chief Executive Officer and Founder
Jonathan Lister Parsons, Chief Technology Officer and Co-Founder
Mary Francis, Senior Independent Director
Mark Wood, Chairman
Michelle Cracknell, Director
Christoph Martin, Chief Financial Officer
Lisa Picardo, Chief Corporate Officer

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