Guarantor loans specialists Amigo is set to be valued at over £1.3 billion when it floats on the London stock exchange next week.

The company provides loans of between £500 and £10,000 for up to a year at a rate of over 40 per cent, with repayments guaranteed by someone connected to the customer, such as a friend or family member.

Founder James Benamor, who started the firm when he was 21, will sell part of his stake through the listing. Amigo has a net loan book of £647 million and around 182,000 borrowers.

Glen Crawford, Chief Executive of Amigo, said: “Today is a significant milestone for all of us at Amigo. We are delighted with the level of support and interest we have received from our new investors. We look forward to further growth and success as a listed company and helping even more people who need alternative finance options.”

It made an adjusted profit before tax of £72m in the year to March, up from £46m two years earlier.