Metro Bank appoints advisers for an initial public offering in 2016

Jessica Morris
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MetroBank could be hit by the Treasury's corporation tax surcharge (Source: Getty)

Metro Bank has reportedly appointed advisers for an initial public offering which could take place as soon as the first quarter of 2016.

The challenger has hired Bank of America, Goldman Sachs and the Royal Bank of Canada to work on the listing which will target around £300m in fundraising proceeds, Sky News has reported.

Sky added that so far, Metro has raised over £600m from investors, and as such a successful flotation could put it close to the mooted £1bn valuation of the business.

Read more: Financial challengers Zopa and Metro Bank join forces

The move comes despite the Treasury's plans for a new corporation tax surcharge, which will take an additional eight per cent of banks’ profits each year. It applies to banking institutions making more than £25m a year, meaning many of the newer, smaller banks will be hit.

A successful float will see it join fellow challenger banks Shawbrook, Aldermore, and Virgin Money which all floated within the last year.

Metro cut its losses to £8.9m in the final quarter of 2014, down from £9.4m in the previous three-month period, as it edges closer towards profitability.

The bank declined to comment.