Market depth will be key to IPO choice, Monument boss says
Ian Rand, the former Barclays executive and boss of Monument Bank, spoke to Morning Wire about the bank’s criteria in choosing where to list.
Monument spiked the City’s speculation following reports it was looking to go public in the US by 2027 – in what would be another huge blow to the London market.
The challenger bank, which has a “crisp laser focus” on mass-affluent customers, had reportedly told investors it wanted to pursue flotation on New York’s Nasdaq exchange, as reported by Sky News’ Mark Kleinman.
In an interview with Morning Wire, chief executive Ian Rand detailed the lender’s pathway towards any potential listing.
“You’re looking for the smoothest, simplest journey onto a listing but then, critically, you’re looking for that depth of market,” Rand said.
On the speculation of Monument’s Nasdaq flotation, Rand commented: “If you asked us today that’s kind of where we’re thinking,” but added no decision had been formalised.
The Nasdaq exchange holds a variety of traders, but takes a particular focus on tech, with major stocks including Amazon, Microsoft and Apple.
Rand quipped: “I like the fact that we will be interesting enough that people will be looking to persuade us at different places to list – that’s good, right?”
Regarding the bank’s inclination to pursue depth overseas, Rand stated: “I think we will always find depth in the UK,” but stressed the lender was being “very selective to find opportunities where we can be different”.
He said: “I think there are quite a few startup fintechs and banks who try and compete and say they’re better than the big banks, but actually virtually do the same thing, maybe on some better technology.
“We try and steer away from that.”
He explained the final decision on any flotation will depend on “what is the package that we have at that time, and where is the smoothest route to market and the biggest depth of interested investors?”
A decision from Monument – which takes its name from the commemoration to the Great Fire of London – to go public overseas would raise questions on the attractiveness of the London market, particularly given the firm’s connection to the City’s heritage.
On this, Rand said: “Any organisation that has a significant presence will feel a draw there but we will make a decision at the right time based on what we are doing at that time.”
The London Stock Exchange has suffered blow after blow in the last year, with major firms such as Ashstead departing overseas and sending the market’s exodus past £100bn.
Target to create ‘corridor banking’
Monument had also been eyeing a secondary listing on a major Middle Eastern or Indian exchange following its US flotation, according to Sky News.
Rand discussed ambitions to “connect the corridor banking that can take place between Singapore, India, Middle East and London.
“And those are corridors that can bank very successfully, and we will be building that out over the next couple of years.”
“We’re very lucky to have a significant and very engaged investor base in the Middle East and the Far East, and so we’re looking to see how we can use both our technology and our franchise and build out more services, both directly in those geographies,” he added.
Monument was bolstered by rapid growth over the last year, entering 2024 with £1bn in client deposits, and now closing in on £5.5bn.
The bank announced on Tuesday it had entered a partnership with Firenze to leverage the fintech’s Lombard loan offerings to its mass-affluent audience.
Rand said fintech partnerships were “really important” and the bank was always on the lookout for the “absolutely best in class” to work with and enhance its target audience’s experience.
As Monument’s target base feels the heat from the current political climate, Rand said one of client’s biggest concerns was “the direction of taxation when it comes to inheritance”.
Rand emphasised the bank’s most simple job was offering “great value products and services” that can help ease the anxieties amongst economic tensions.