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

Trustpilot