Aldermore pulls trigger on float for second time
CHALLENGER bank Aldermore yesterday revived plans to list shares on the London stock market – four months after it originally shelved proposals due to market turbulence.
The outfit abandoned a flotation last October in the wake of a seven per cent slump in London’s stock markets amid fears of a global slowdown, but has now dusted off the plan.
The bank’s private equity backer Anacap said it will sell existing shares in the company, which it bought in May 2009. The sale of new shares in the group will raise £75m to build a war chest to aid growth at the company. The flotation is expected to give the bank a valuation of between £600m and £650m.
“Now is the right time for Aldermore to seek a listing on the London Stock Exchange,” chief executive Phillip Monks said.
“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,” Shares are expected to start trading as soon as 9 March. Most of the bookbuilding and price discovery for the issue took place when Aldermore announced initial plans to tap the market last October, giving it scope to fast-track the listing this time round.
Shares were priced at between 217p and 265p per share then, which would have given the bank a valuation of £870m at the top end of the range. The price range is expected to be lower this time around.