Elephant float is oversubscribed

Ahead of its AIM flotation scheduled for November 23 Elephant Loans & Mortgages has announced that the float is oversubscribed.

As of Thursday November 17, the company confirmed that over 21 million shares had been sold at 3p per share. This represents a total of 10.34% of the issued share capital of the company immediately following the placing, equating to 650,000 gross proceeds.

The company is thought to be the first packager of secured loans and mortgages to the non-standard market to be floated on AIM.

The market for non-standard secured loans and mortgages is widely regarded as a high growth area as demand increases from consumers seeking to consolidate and refinance existing sources of debt by tapping into the additional equity in their homes. According to Mintel, between 2000 and 2004 the value of outstanding debt secured on dwellings increased annually by an average of 12% per year from 536bn in 2000 to 852.5bn in September 2004.

Gary Miller-Cheevers, CEO at Elephant Loans & Mortgages says: Weve put forward a strong business strategy, with a carefully planned period of expansion following this flotation. Forecasters have suggested that our market is set to grow in the next few years, and were therefore in a prime position to benefit from this. As a result of both market trends and our robust management strategy we have proven ourselves to be an attractive prospect for many investors. Were confident that their backing will pay off.