Shojin now counts the UK government as a shareholder as it prepares for an initial public offering (IPO) in 2026.
The British Business Bank's investment in Shojin under the Future Fund has been converted into equity, making the UK government a shareholder in the real estate investment platform.
The state-backed development bank launched the Future Fund in May 2020 to support high-growth companies during the pandemic.
Read more: The Future Fund is now involved in 591 companies
The investments were made in the form of convertible loans, subject to appropriate financing from private investors. Under the terms of the Future Fund, the debt and associated interest would be converted into equity if the company exceeds its original financing amount through follow-on financing.
In December 2020, Shojin received £860,000 from the British Business Bank, which resulted in the Future Fund acquiring a 5.16 percent stake in Shojin from December 2023.
“Shojin has grown significantly over the last few years with the share price increasing from £500 to £1,029 per share and we are forecasting 5-9x growth over the next few years, so this was and is a very good investment for the future fund. Your investment will grow alongside other shareholders,” said Noil Porter, chief financial officer at Shojin.
“Financing helped significantly as it was debt, which allowed us to overcome the challenges of the pandemic. The government has benefited from a 57 percent increase in its stock value in 36 months.”
Shojin is seeking to raise £4.9 million in its final private fundraising before a planned IPO in 2026.
“Our current valuation is 65.8 million pounds and our goal is to increase this valuation to 588 million pounds by 2026,” Shojin said.
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