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The blue corner; key challenger bank makes stock market debut

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Challenger bank Aldermore made its stock market debut this week, in an IPO that raised £226m.

Aldermore shares jumped by 12 per cent following their debut with private equity backer AnaCap netting approximately £150m. The bank sold 117.9m shares for 192p apiece, around 35 per cent of the company.

The IPO attracted interest from many quarters, including long-term, blue-chip orientated private investors in the UK and US, and hedge funds. Demand exceeded the amount of available shares five times over.

Aldermore has sought to establish itself as a leading challenger bank, taking on the UK ‘Big Five’ (Barclays, HSBC, Lloyds, RBS and Santander) by lending to individuals and SMEs at competitive rates. The bank also makes much of the fact that they are unblemished by past misconduct and ongoing investigations.

Last year, Aldermore’s net lending grew by 42 per cent, to £4.8bn; the bank expects to match this performance in 2015.

“The success of our IPO is testament to the strength of our story as a legacy-free bank,” said Aldermore chief executive Philip Monks. “It’s a natural next stepping stone for us to go to markets that have deeper and broader pools of capital. The company will after a while outgrow private equity and we were getting towards that stage.”

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