UK government takes stake in Shojin as platform eyes IPO

Shojin now counts the UK government as a shareholder, as it readies for an initial public offering (IPO) in 2026.

The British Business Bank’s investment into Shojin as part of the Future Fund has been converted into equity, making the UK government a stakeholder in the property investment platform.

The state-backed development bank launched the Future Fund in May 2020, to support high-growth businesses during the pandemic.

Read more: Future Fund now has stake in 591 firms

The investments were made in the form of convertible loans, subject to equal match funding from private investors. Under the terms of the Future Fund, if the business surpassed its original funding amount through subsequent financing, the debt and associated interest would convert into equity.

In December 2020, Shojin received £860,000 from the British Business Bank, which resulted in the Future Fund acquiring a 5.16 per cent stake in Shojin as of December 2023.

“Shojin has grown significantly in the past few years with the share price increasing from £500 to £1,029 per share, and we forecast a 5-9x growth in the next few years, so this has been, and will continue to be, a very good investment for the Future Fund. Their investment will grow along with other shareholders,” said Noil Porter, chief financial officer at Shojin.

“The funding has helped significantly because it came as debt and allowed us to navigate through the challenges of the pandemic. The government has benefitted from a 57 per cent increase in their share value over 36 months.”

Shojin is looking to raise £4.9m for its last private fundraise ahead of a planned IPO in 2026.

“Our current valuation is £65.8m and our target is to increase this valuation to £588m by 2026,” Shojin said.