09 October 2015 – Daily Telegraph
New bank aims to go public in London early next year
Metro Bank has hired advisers to help launch a stock market float that would help fuel its expansion and lock in a windfall for its founding investors.
The bank, which launched in the UK in 2010, is trying to challenge the existing high street lenders with longer opening hours and unorthodox branches that allow customers to bring in their dogs.
Metro Bank is believed to have hired Goldman Sachs, Bank of America Merrill Lynch and Royal Bank of Canada to prepare the ground for a flotation next year. Other advisers could be added at a later stage, according to Sky News.
BAML and RBC worked on Metro Bank’s £387.5m fundraising round last year. The company is also thought to be in the process of adding more PR advisers ahead of the initial public offering (IPO). Five years after the bank’s American founder Vernon Hill opened the first branch in Holborn in central London, Metro Bank has attracted more than half a million customers and reported deposits of £2.8bn at the end of last year.
Metro’s business is split evenly between consumer and business banking. However, the company is yet to turn an annual profit. Its investors include the Reuben brothers, the US property developer Richard LeFrak and the hedge fund manager Steven Cohen. Metro Bank is set to follow its fellow challenger banks Virgin Money and Aldermore onto the London stock market. The value of the bank through the IPO has been mooted at £1bn. Metro Bank could not be reached for comment on the appointment of advisers.