Aldermore to be valued at up to £660m as bank covers book
CHALLENGER bank Aldermore is set to debut on the stock market next week with a valuation of between £600m and £660m, City A.M. understands.
The lender tried to list late last year but had to pull the initial public offering when choppy markets hit investor confidence.
But buyers are understood to be flooding into the lower-priced offering now – the book was covered within hours of opening yesterday.
The shares in the bank, which offers savings accounts and mortgages as well as commercial finance products, are expected to be priced at £1.75 to £1.95.
The sale will see 40 per cent of the bank sold to new investors, with £75m being raised in new shares as part of the offering.
Last year Aldermore, headed by chief executive Phillip Monks, had hoped to hit a valuation of £800m, but has taken a more cautious approach this time around.
Virgin Money also delayed its float last year, eventually listing in November.
Although the initial response from investors was muted, Virgin Money’s shares have since risen by almost 15 per cent, reflecting improved investor sentiment.
Aldermore declined to comment on the ongoing float process.