The flotation of Aldermore, the challenger bank focused on small business lending, was on the brink of collapse last night.
Aldermore, which is trying to raise funds in the market at the same time as the retail challenger bank Virgin Money, has faced a tough time during its marketing period.
Demand has been hit by choppy and volatile markets combined with a poor investor climate, with many institutional shareholders saying their appetite has been sated by a huge number of issues during the first half of the year.
One banker working on the flotation said Tuesday evening: "I simply don't know whether it's been pulled. If it has, that's news to me."
Investment bankers began querying whether the flotation, which was set to raise £75m in new money, would get off the ground last week after three days of bookbuilding in London failed to come up with sufficient demand.
Aldermore could not be reached for comment.