Precise’s backers pursue IPO after ditching sale plans

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Precise’s backers have reportedly pulled the plug on a potential sale after bids did not reach its asking price.

Sources told Sky News the bids were 10-15 per cent below the £400m asking price as potential investors sought to price in a potential Brexit and a regulatory clampdown on buy-to-let.

Mortgage Strategy understands backers Elliott Associates and the Precise board are now going to press ahead with floating on the stock market instead. This is believed to have been on the cards regardless of a sale.

In January, Mortgage Strategy revealed Elliott and Precise were pursuing a sale.

Precise, which launched in 2010, currently operates in the buy-to-let, residential, bridging and second charge markets and lent £1.6bn to borrowers in 2015. Its figures show it has just six accounts in arrears and 94 per cent of its lending is to prime borrowers, according the FCA definition. It is expected to double profit to £40m this year.

In March last year, Precise parent Charter Court Financial Services launched Charter Savings Bank after being granted a banking licence. It currently has around 36,000 savings accounts on its books, with balances of £1.5bn.

Precise declined to comment.