UK equity funds back challenger banks ahead of next IPO wave

UK investors back challenger banks

clock • 3 min read

With a growing number of challenger banks listing in the UK this year, UK managers have embraced the opportunity to find a ‘purer' play on the country's financial sector than larger institutions.

Five-year-old bank Aldermore has announced plans to list on the London Stock Exchange later this year, while Lloyds spin-off TSB raised £1.3bn in a June flotation, and OneSavings Bank also raised £134m via its own listing. The trend was confirmed last week when Lloyds announced plans to sell a further 11.5% of TSB. Virgin Money, meanwhile, is also reportedly set to announce flotation plans in the coming days. Another recent entrant into the sector, Metro Bank, has raised close to £390m through a private share offering and is expected to make its initial public offering in 2016. Whi...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Stock pickers urge caution over rapid return to US equities

Stock pickers urge caution over rapid return to US equities

Quilter and Fidelity

Linus Uhlig
clock 01 July 2025 • 1 min read
Deep Dive: US equities may not have peaked but do require greater selectivity

Deep Dive: US equities may not have peaked but do require greater selectivity

Amid equity rebalancing

Linus Uhlig
clock 13 June 2025 • 4 min read
Partner Insight: Robeco Emerging Markets Equities strategy - Targeting alpha in a new world of growth

Partner Insight: Robeco Emerging Markets Equities strategy - Targeting alpha in a new world of growth

Jan de Bruijn, Director, Emerging Market Equities, Robeco
clock 06 June 2025 • 5 min read
Trustpilot