After tapping backers for another 30 million, the Atom Bank has pushed back its flotation by at least two years, giving it a post-deal valuation of 460 million.
The online lender is aiming for a liquidity event in 2024 or 2025, having previously penciled in 2022 or 2023. A first public offering on the stock market or trade sale could be a type of event that could lead to a liquidity event.
Mark Mullen, 54, the company's chief executive, said stock market conditions had soured. He said that there were now many more questions about the UK's economic outlook after recent political upheaval and I am not hearing anyone talk about the prospect of a listing next year.
One of the first digital-only challengers to win a banking licence, Atom has been a poster child for the financial technology sector. In 2016 it has 165,000 registered customers, 4.7 billion in deposits and 2.9 billion loan books. It was one of the first major employers to move its 470 employees to a four-day week with no loss of pay, a pioneer in new workplace practices.
The capital-raising was the same price per share as one in February 2022 that raised 75 million. The two biggest shareholders of Atom -- BBVA, the Spanish banking group, and Toscafund, the private equity firm -- each raised their stakes. The renamed car of the collapsed Woodford empire, which owned 11 per cent, did not take part, according to Schroder UK Public Private Trust.
Mullen said that the Atom was in good shape, with only 0.1 per cent of its 1.9 billion domestic mortgage book in arrears. He said that just 11 corporate borrowers in the 1 billion loanbook were in arrears.
Mullen said that the Atom had been trundling along at break-even level for several quarters.