Aldermore, the challenger bank that is ruffling Britain’s biggest banks’ feathers, plans to launch an IPO in March this year.
The UK banking newcomer, which was only founded in 2009, confirmed in a statement that it plans to raise £75 million from the stock market sale. The IPO is worth between £600 million to £650 million.
Credit Suisse and Deutsche Bank are leading the London Stock Exchange listing.
After initially shelving plans to list in October 2014, citing a “deterioration of the global equity markets“, Aldermore made it clear that the time is, finally, right.
“Now is the right time for Aldermore to seek a listing on the London Stock Exchange,” said Phillip Monks, CEO at Aldermore in the group’s regulatory statement. “As our strong performance in 2014 highlights, we have consistently delivered on our ambitious targets and we have proven our ability to grow organically and profitably. In 2014, underlying profit before tax more than doubled, driven by strong balance sheet growth, with net lending to SMEs and homeowners higher than ever before.”
On Monday, the FTSE 100 opened at a record level, 6,939.89 just minutes after the open. Today, it is hovering around 6907.00. This is still up from the previous day’s close of 6904.11.
“The index remains in 2.5-month uptrend and above the 1-year resistance level 6900,” said Mike van Dulken, Head of Research at Accendo Markets, in a clients note. “The watch levels are 6960 for the bullish and Bullish 6880 for the bearish.”
On 18 February, Aldermore’s CEO Monks told Business Insider about how the upstart lender is capitalising on Britons’ hatred for the UK’s biggest banks.
In 2014, small and medium enterprise (SME) deposits rocketed by 97% to £1 billion in its online deposit franchise, while regular customer online deposits jumped by 29% to £4.5 billion. It now has 50,000 SME customers in total to date.
Lending to SMEs also surged by a third to £2.2bn in 2014 while net loans to customers jumped 42% to £4.8bn, compared to the previous year.