Aldermore IPO to value challenger bank at around £800m

Aldermore has set a price range for its initial public offering that will value the challenger bank at around £800m.

 

The price for the IPO will be set at between 217p and 265p per ordinary share. Trading is expected to begin as soon as 17 October.

 

The five-year-old bank announced half-year profits of £18.6m last month, a 249 per cent increase on last year’s £5.3m.

 

Aldermore chief executive Phillip Monks told City A.M. that by 2017 the bank wants to see “a return on equity of 20 per cent, a cost to income ratio of 40 per cent, and a bank that is continuing to grow.”

 

Aldermore is one of a number of retail challenger banks launched during the recession that have either already gone public or announced a forthcoming IPO.

 

Virgin Money followed Aldermore's lead yesterday by announcing its intention to float on the stock market. It expects to raise around £150m and to be valued between £1.5bn and £2bn.

 

One Savings Bank was valued at around £600m when it listed in June, while TSB was valued at around £1.3bn.