Aldermore pulls flotation
LENDER Aldermore has scrapped plans to pursue its flotation claiming recent market upheaval is likely to limit the appeal of the new shares.
The bank announced last month it was intending to float on the London Stock Exchange to raise £300m. The flotation would have valued the business at £800m and been supported by a £75m fundraising.
It said becoming a public company was the natural next step in its evolution and positions it for the next stage of its development, supported by greater access to capital markets and an enhanced brand profile.
However, in a new statement to the LSE, the bank said: “Due to the recent deterioration of global equity markets, Aldermore’s board and shareholders have elected not to proceed at this time with the initial public offering of Aldermore.
“Aldermore continues to perform strongly, with excellent organic loan growth and a proven track record of delivery through its modern, digital platform. AnaCap, as a long term investor, will continue to support the next phase of its development.”
Chief executive Phillip Monks said last month that the bank offered investors significant benefits due to its modern digital infrastructure and proven distribution channels.
“We deliver straightforward products and sector expertise to customers in underserved market segments that offer attractive risk-adjusted returns. Our offering is underpinned by a diversified funding base and robust capital position,” he said.
Analysts said the moved now shifted attention towards Virgin Money, the UK bank part-owned by Sir Richard Branson, which similarly announced flotation plans earlier this month.
