Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

Business

Atom Bank suspends flotation after raising £30m from investors

Atom Bank has pushed back its flotation by at least two years after tapping backers for another £30 million, giving it a post-deal valuation of £460 million.

The fast-growing, Durham-based online lender is now aiming for a “liquidity event” in 2024 or 2025, having previously pencilled in 2022 or 2023. A liquidity event could be an initial public offering on the stock market or a trade sale.

Mark Mullen, 54, its chief executive, said stock market conditions had soured. “I’m not hearing anyone in the market talk up the prospect of a listing next year,” he said, adding that there were now many more questions about the UK economic outlook after recent political upheaval.

Atom, one of the first digital-only challengers to win a banking licence, has been a poster child for the financial technology sector. Launched in 2016, it has 165,000 registered customers, £4.7 billion in deposits and a £2.9 billion loan book. It was a pioneer in new workplace practices, being one of the first significant employers to move its 470 employees to a four-day week with no loss of pay.

The capital-raising was at the same price per share as one in February 2022 that raised £75 million. Atom’s two biggest shareholders — BBVA, the Spanish banking group, and Toscafund, the private equity firm — each raised their stakes. Schroder UK Public Private Trust, the renamed vehicle of the collapsed Woodford empire, which owned 11 per cent, did not take part.

Mullen said Atom was in good shape, with only 0.1 per cent of its £1.9 billion domestic mortgage book in arrears. Just 11 corporate borrowers in the £1 billion loanbook were in arrears, he said.

Atom had been “trundling along at break-even level” for several quarters now, Mullen added. “We want to put a bit more growth into it.”

Read more:
Atom Bank suspends flotation after raising £30m from investors

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Business

    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Business

    Mark Zuckerberg has laid off more than 11,000 Meta’s employees, about 13 per cent of its global workforce, in what he described as “some...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 rightdecisionnow.com | All Rights Reserved