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Mobile-only Atom Bank has raised more than £75m in new equity priced at 70p per share as it continues to grow its profitability and drive to IPO.
The raise will be led by BBVA and by Toscafund with co-investors Infinity Investment Partners, and is now being opened to other existing shareholders.
Today’s announcement follows a £40m raise in April 2021 at a steeply discounted price of 60p a share, just under half the price at which it raised equity in 2019. The Durham-based digital lender has now raised more than £115m in the last 12 months.
Atom in August reported an underlying operating loss of £36 million for the year to end-March 2021, down from £46 million in the year prior. However it achieved its first monthly operating profit in June, bolstered by strong growth in Covid-related lending, which was up by 176% to £662 million from £240 million last year.
By the end of the year Atom’s on-balance sheet lending to small businesses surpassed £1bn, with both mortgage and business loans growing by 30%.
2021 also saw total customer deposits grow by 16% to £2.5bn, with £1bn of savings held in Atom’s Instant Saver accounts. The bank says the new funding will help it grow the deposit base to £2 billion in FY23.
Mark Mullen, Chief Executive Officer at Atom says: “This capital will allow Atom 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.”
Financial Services
