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February 24, 2015updated 12 Apr 2017 3:54pm

Aldermore revives intention for IPO

UK challenger bank Aldermore has revived its intention to float on the London stock exchange, according to a statement released to the press by the bank today.

By Brian Cantwell

UK challenger bank Aldermore has revived its intention to float on the London Stock Exchange, according to a statement released to the press by the bank today.

The listing intends to raise approximately £75m (€102.28) by sales of shares to institutional investors in the UK and United States such as public pension plans and family offices, in March.

The bank said the net profits from the listing "will be used to support the medium term growth of the business".

Last October Aldermore pulled a U-turn on a public intention to float after global equity markets tumbled in value, reducing the profitability of a listing for the bank.

In recent weeks press speculation had surrounded the IPO, after the bank’s results omitted mention of the floatation, and press reports indicated rival UK challenger bank Shawbrook would attempt to beat Aldermore to a public listing.

Both banks are intending to list before the UK’s general election to secure the greatest proportion of institutional investment, which could vary post-election due to fears over volatility, according to a report in the Financial Times.

Phillip Monks, Aldermore chief executive officer, said: "Now in our sixth year, Aldermore has demonstrated strong and sustainable levels of profitable growth, as seen most recently in our record full year results; we have been clear that we view the public markets as the right place for us to be as we look to maintain this momentum.

"Now is the right time for Aldermore to seek a listing on the London Stock Exchange. 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. "The combination of a modern, digital, legacy-free platform and award winning expertise in otherwise underserved market segments enable Aldermore to offer banking services the way they should be. This means attractive and straight-forward products combined with transparent and efficient service to meet each of our customers’ needs and deliver them appropriate financial solutions. We will look to offer our shareholders strong risk-adjusted returns underpinned by a modern and scalable operating platform."

The listing will also comprise a sale by private equity house AnaCap Financial Partners of a portion of its existing holding of shares, said the release.

Credit Suisse, Deutsche Bank and RBC Europe are acting as joint global coordinators and joint bookrunners, with Deutsche Bank acting as sponsor. Japanese bank Nomura International and Numis Securities Limited are helping to manage the listing, with Lazard advising to Aldermore and AnaCap on the deal.

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