Challenger bank Aldermore covers books on IPO

Challenger bank Aldermore has covered the books on its initial public offering, early in the first day of its bookbuild, City A.M. understands.

 

The lender had to postpone its flotation late last year on choppy market conditions, so will be relieved to have had such a warm hearing from investors this time around.

 

The bank, headed by Phillip Monks, is selling shares worth 40 per cent of the business, and is raising £75m of new funds in the stock market debut.

Its IPO is expected to value the bank at £600m to £660m, with shares priced at between £1.75 to £1.95.

 

Having scrapped its original plans in October, Aldermore confirmed at the end of last month that it was planning to have another go at its IPO, after it posted figures showing underlying profit before tax more than doubled in 2014 to £56m, while return on equity increased 15 per cent and net loans rose 42 per cent to £4.8bn.

 

Aldermore will become the second challenger bank to IPO in recent months: in November, Virgin Money pressed ahead with its plans to float, having scrapped them around the same time as Aldermore.