Shawbrook announced plans to float on the London Stock Exchange, a move that could estimate the attention of expert lenders at £20 billion, which would be the initial IPO in London this year.
Founded in 2011, the bank provides mortgages to professional landlords, real estate investors and individual homeowners, with more complex income and credit profiles, as well as auto financing.
It is backed by private equity group BC partners and Pollen Street Capital.
Retail mortgages are primarily through its Bluestone mortgage and mortgage lender brand, which merged its sales team in April.
The lender said the IPO would allow it to “access a wider range of potential capital sources” which would “support its ambitious growth plan.”
It noted that since 2011, its loan book has increased it from about £100 million to £17 billion.
The group’s “30 x 30″ target” means that by the end of 2030, it aims to increase its loan book to around £30 billion.
The bank’s commercial institutions include real estate and small business loans, currently own a loan, currently at £10.5 billion, accounting for 61% of its business.
Its retail division, which includes its retail mortgage brand and consumer finance, has a loan book of £6.6 billion, accounting for 39% of its loans.
“We have achieved true scale, the current market is big and growing, and supported by an attractive tailwind,” said Shawbrook CEO Marcelino Castrillo.
“We also saw a great opportunity to bring Shawbrook’s products to new types of customers.”
The move comes as London has been working hard to attract new listings in recent years.
As of September, £156 million was raised from new lists on the main and primary markets of LSE, while the NYSE and Nasdaq listed companies raised £39 billion, according to data firm Dealogic.
Douglas, CEO of Manx Financial Group, said: “It is encouraging to see the UK capital markets being used in such landmark transactions.
“The flotation of the Shobrooke program shows that investors still have a lot of demand for bank stocks with good asset quantification with long-term growth prospects.
“This announcement is a critical moment in London’s critical period, which continues to face scrutiny on its competitiveness and trading pipeline.”
Elliot Reader, director of Houlihan Lokey Fintech Group, added: “In addition to having direct market impact, the list can also provide useful valuation benchmarks in the professional banking and finance sectors, which in recent years have been more private than public listing activities.
“Overall, this is an important signal for sponsors and investors to see the UK market as a way to exit or raise funds.”
Shawbrook reportedly tried to float earlier this year only because its plans were put on hold after spring market turmoil caused by trade wars by U.S. President Donald Trump.
The bank has previously listed in London but acquired the company in a consortium led by its British Columbia partner and Pollen Street Capital in 2017 for a £861 million deal.
