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Aldermore to raise £75m via float 25 February 2015

Challenger bank Aldermore has revealed full details of plans to raise £75m by floating on the London Stock Exchange next month.

The bank released details of a proposed initial public offering (IPO) that will value the firm at between £600m and around £650m and see 40 per cent of the company’s shares listed.

The float will comprise an offer of new and existing shares to institutional investors and the proceeds will be used to support the “medium term growth of the business”, according to an Aldermore statement.

Aldermore’s current owner, the private equity firm Anacap Financial Partners, will sell a portion of its shares along with other investors.

Phillip Monks, chief executive of Aldermore, said: “Now is the right time for Aldermore to seek a listing on the London Stock Exchange.

“As our strong performance in 2014 highlights, we have consistently delivered on our ambitious targets and we have proven our ability to grow organically and profitably.”

He added: “In 2014 underlying profit before tax more than doubled, driven by strong balance sheet growth, with net lending to SMEs and homeowners higher than ever before.”

Aldermore’s underlying pre-tax profit reached £56.3m for the year to 31 December 2014, while its total net loans hit £4.8bn, compared to £3.4bn in 2013. Of the 2014 total, £2.2bn is lent to SMEs and £2.6bn is lent to home owners.

The bank does not have a traditional branch network, instead using brokers, online channels and regional offices. The lender has also managed to diversify funding via the securitisation market, by issuing £33m if residential mortgage-backed securities in April last year.

The company has grown from 50 employees soon after its launch in May 2009, when it had £76m in customer loans, to £5.6bn of assets and 875 staff.

Its IPO will follow an aborted attempt last year due to fluctuating equity markets.



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