Business & Economy
Durham’s Atom Bank pushing on with flotation plans after £75 million raise
February 18, 2022
A mobile lender says it has taken a “fundamental next step” on its journey towards flotation after raising more than £75 million.
Atom Bank achieved the mark following new equity priced at 70p per share.
Bosses say the raise, led by investors BBVA and Toscafund, alongside co-investors Infinity Investment Partners, leaves the Durham-headquartered lender well placed to meet stock market plans.
The latest announcement, which will see the round opened to other existing fundraisers, follows a £40 million raise in April last year that means the bank has generated more than £115 million in the last 12 months.
Mark Mullen, chief executive, said: “It has been a year of excellent progress.
“We’ve achieved a number of important financial milestones, maintained our excellent reputation with our customers and are pioneering the future of work.
“Our investors are now backing our continued growth.
“This capital will allow us to build on the progress we have made, and to keep offering real competition for people who want to own their own home, grow their own businesses and – at a time of rapidly rising costs – save for the future.
“It is also a fundamental next step on our journey toward IPO.”
The latest fundraising at the lender, which is based in Aykley Heads, on the outskirts of Durham City, comes on the back of strong market demand that helped it deliver its first monthly operating profit.
Officials say mortgage and business loans have both grown by 30 per cent in the last nine months, with mortgage completions passing £3 billion in 2021.
Its on-balance sheet lending to small businesses also surpassed £1 billion during the last calendar year, with total customer deposits growing 16 per cent to £2.5 billion.
The firm has also introduced a four-day working week, which it says has not affected workers’ pay.