Atom Bank

Atom Bank raises over £75m ahead of IPO

Atom Bank has raised over £75m in new equity priced at 70p per share as it continues to grow its profitability and drive to its initial public offering (IPO).

The raise — led by BBVA and Toscafund with co-investors Infinity Investment Partners — is now being opened to other existing shareholders.

Together with the bank’s previous £40m raise in April 2021, the digital lender has now obtained over £115m in the last 12 months.

This follows Atom Bank's successful performance in recent months, which saw both its mortgage and business loans grow by 30%.

Last year, the bank passed £3bn of mortgage completions, with applications for its digital loans peaking at £315m in Q3.

Its on-balance sheet lending to small businesses also surpassed £1bn during 2021.

In addition, Atom Bank saw its interest margin rise to 1.28% in the year to date from 0.51% in the previous financial year.

Total customer deposits grew by 16% to £2.5bn in 2021, £1bn of which are held in Atom Bank’s instant saver account option.

In 2023, the bank aims to increase deposits by a further £2bn.

Mark Mullen, CEO at Atom Bank, said: “It has been a year of excellent progress for Atom Bank.

“We’ve achieved a number of important financial milestones, maintained our excellent reputation with our customers and with the introduction of our shorter four-day working week with no loss of pay, we’re 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 save for the future.  

“It is also a fundamental next step on our journey toward IPO.”

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