Cornerstone FS Plc has announced plans to raise £2.2mln in its IPO, which would value the fintech company at £12.3mln.
The cloud-based provider of international payment is planning to issue shares at 61p a pop and to be admitted to AIM on April 6.
It is proposing to appoint Elliott Michael Mannis as a non-executive chairman and Glyn Anthony Barker and Daniel Song Mackinnon as independent non-executive directors once it goes public.
The board currently consists of chief executive Julian David Wheatland, chief finance officer Judy Amanda Happe, Gareth Maitland Edwards and Philip Barry as non-executive directors.
Cornerstone is the UK based holding company of FXPress Payment Services Ltd and Avila House Limited.
FXPress was a small foreign exchange broking business but in 2018 it developed FXPal, its own proprietary cloud-based multi-currency payments platform, which is hosted on Amazon Web Services.
FXPress processed £300mln-worth of transactions in the first half of the year for around 650 customers at prices well below the cost of doing business with the high street banks. The product is also white labelled to 30 other firms.
Last October, Cornerstone acquired Avila, which has a small electronic money institution licence focused on multi-currency e-wallets.
It will allow clients to leave funds on deposit so they can hold a multi-currency current account.
Cornerstone intends to grow through the acquisition of other foreign exchange businesses of a similar size to FXPress, as well as continuing to develop FXPal to provide additional services and integrations with popular cloud-based accounting applications.
What Wheatland and his team plan could represent a mini-revolution for the small- and mid-sized companies (referred to as SMEs), who currently have a dysfunctional relationship with their banks.
Take a small business that operates in three international jurisdictions that has to pay bills and payroll in all three.
Currently, this might require the finance department to use three separate local banks (and all the paperwork, dongles and security questions that requires), or a single bank account where costly international payments have to be fired out manually throughout the month.
Neither situation is optimal – and remember there are multiple variations of these two basic scenarios.
“Nobody is looking at the space in the way we are,” Wheatland previously told Proactive.
“Our competition – Tide and Starling – are interested in consumers and are offering a version of their consumer product to SMEs. We are the only people creating a product directly for smaller companies.”