UK challenger Atom Bank has confirmed a £40 million fund raise at 60p-a-share, just under half the price at which it raised equity in 2019.
As previously reported, the raise is being led by Spanish giant BBVA, which owns about 40% of Atom, and Toscafund Asset Management.
Despite the steeply discounted valuation, Atom says it has seen its best ever year and is gearing up for an IPO in the next 48 months. Revenues are growing strongly, says Atom, adding that it is on course to achieve over 100bps of Net Interest Margin by the end March.
The app-based outfit says lending to SMEs on its balance sheet has tripled over the last 12 months to over £700 million. Meanwhile, it has taken over £400 million of mortgage applications in the second half of financial year 2020/21.
Atom CEO Mark Mullen says: “On the back of our best year ever and with really strong momentum baked into the business, this raise will accelerate our progress even further during 2021, and prepare us for the next stage in our growth and development prior to IPO, which we anticipate taking place in the next two years or so.”