Atom Financial institution suspends flotation after elevating £30m from traders

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Atom Financial institution has pushed again its flotation by no less than two years after tapping backers for an additional £30 million, giving it a post-deal valuation of £460 million.

The fast-growing, Durham-based on-line lender is now aiming for a “liquidity occasion” in 2024 or 2025, having beforehand pencilled in 2022 or 2023. A liquidity occasion might be an preliminary public providing on the inventory market or a commerce sale.

Mark Mullen, 54, its chief govt, mentioned inventory market situations had soured. “I’m not listening to anybody out there discuss up the prospect of a list subsequent 12 months,” he mentioned, including that there have been now many extra questions in regards to the UK financial outlook after current political upheaval.

Atom, one of many first digital-only challengers to win a banking licence, has been a poster youngster for the monetary expertise sector. Launched in 2016, it has 165,000 registered clients, £4.7 billion in deposits and a £2.9 billion mortgage guide. It was a pioneer in new office practices, being one of many first vital employers to maneuver its 470 staff to a four-day week with no lack of pay.

The capital-raising was on the identical value per share as one in February 2022 that raised £75 million. Atom’s two largest shareholders — BBVA, the Spanish banking group, and Toscafund, the personal fairness agency — every raised their stakes. Schroder UK Public Non-public Belief, the renamed car of the collapsed Woodford empire, which owned 11 per cent, didn’t participate.

Mullen mentioned Atom was in fine condition, with solely 0.1 per cent of its £1.9 billion home mortgage guide in arrears. Simply 11 company debtors within the £1 billion loanbook had been in arrears, he mentioned.

Atom had been “trundling alongside at break-even stage” for a number of quarters now, Mullen added. “We wish to put a bit extra development into it.”



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