LONDON: Mode Global Holdings, the UK-based Fintech Group, has announced intention to undertake an Initial Public Offering (IPO) and the expected publication by Mode of its Prospectus, which has been submitted for approval to the FCA.
The Group is applying to be admitted to the standard listing segment of the Official List of the FCA and to trading on the main market of the London Stock Exchange plc (LSE). Admission will be subject to the requisite regulatory approvals being obtained.
The Offer will comprise new ordinary shares to be issued by the Company (expected to raise £7.5 million of gross proceeds). The final offer price in respect of the Offer is expected to be £0.50.
The directors of Mode believe that the Offer and Admission will position the Company for the next stage of its strategic development, by further raising its profile and providing an appropriate capital structure for future growth, including the funding of existing and new lines of activity relating to digital banking and associated services.
The net proceeds from the issue of the Shares will be used to cover technology costs to develop the intellectual property of the platforms and marketing costs to build awareness amongst businesses and consumers, placing fees (including brokerage and placement agent fees), corporate and legal fees, licence costs to cover our European roll-out, regulatory capital for the E-Money Institution (EMI) licence and other working capital.
Mode is a UK-based Fintech Group, building a modern financial services business to support an increasingly digitised economy and financial system, combining the best of banking, payments, investment, loyalty and digital assets.
Mode business today comprises:
· Mode app – a groundbreaking digital banking app that allows users to manage their traditional and digital assets all in one place.
· Bitcoin Jar – one of the highest-yielding and most flexible interest-generating accounts for Bitcoin in the market (accessible through the Mode app).
· Business payments (WeChat and Alipay) – payment processing services for UK and European businesses to tap into the Chinese market. Mode has secured key partnerships with Tencent (WeChat) and Alipay.
· Business marketing services (WeChat) – marketing and social media services for UK and European businesses on one of China’s most popular apps.
Mode plans to launch a novel payments solution powered by Open Banking that eliminates the need for cards. The new solution will aim to facilitate direct and seamless transactions in traditional and digital currency between businesses and Mode users.
Mode’s payment solution will not rely on the card schemes and as such will not be subject to any of their fees and/or restrictions. Furthermore, Mode’s ecosystem-centric business model will seek to build a stronger consumer – business relationship, which the Directors believe will enable Mode to operate a significantly more diversified revenue model than the challenger banks, including both ‘regular’ Fintech revenue streams in addition to a range of more stable and high value revenue sources.
Company also plans to develop a loyalty and rewards engine that builds on banking, financial and payment-related insights, allowing businesses to run targeted loyalty campaigns to engage with new and existing consumers; integrate the new payment and loyalty capabilities into the Mode app and relaunch as a next-generation super app with unique banking, payment, investment, loyalty and digital asset features, all in one.
Jonathan Rowland, Mode Founder and Executive Chairman, said: “Our announcement today demonstrates our ambition as well as confidence in our ability to leverage technology and talent to accelerate the digitalisation of finance. Mode’s mission is to eliminate the fragmentation and friction that plague today’s banking, payment, investment and loyalty industries. We are seeing an accelerated transition to online and mobile payments in the new post-COVID era, and Mode plans to leverage this by offering superior financial services for consumers and businesses alike. Mode is set to become one the first financial services companies on the LSE Main Market with a consumer focused-digital offering. This is a major milestone for Mode, and a vital step in bringing credibility and transparency to both the Fintech and digital asset industries.”
Through the future integrated platform, Mode’s goal is to offer businesses the ability to engage seamlessly with UK customers through the latest payment technology such as Open Banking, and at the same time reach key global markets such as China, through one single and frictionless partnership.