SHAWBROOK Bank yesterday announced it planned to become the latest challenger to float on the stock market, raising around £90m in new capital.
The announcement of its intention to float follows an impressive showing by rival Aldermore earlier this week, when its shares closed 12 per cent higher on its first day of trading. Its shares are currently trading at 222p, up 15 per cent from its 192p listing price.
Shawbrook was founded in 2011 to fill the gap left by high street lenders when they tightened restrictions on lending to small firms, and the initial public offering (IPO) could value it at as much as £1bn.
George Mathewson, a former chief executive of RBS, chairs the bank.
Chief executive Richard Pyman said the bank had developed a “clearly differentiated business with impressive returns.”
The bank made customer loans of £2.3bn in 2014, with an underlying profit before tax of £49.1m.
The news also follows a strong showing by Virgin Money, which pushed ahead with a listing in November. Its shares have risen more than 30 per cent since it listed.