Aldermore expected to make £800m on stock market debut

The challenger bank has set a target share price range between 217p and 265p per share for the listing and hopes to raise around £75m in capital from the launch.

Aldermore has around £4bn in loans outstanding, and reported pre-tax profits of £18.6m for the half-year to 30 June, up from £5.3m a year earlier.

Announcing the plans last month, Aldermore chief executive Phillip Monks said:

“Now in our sixth year of growth, becoming a public company is the natural next step in Aldermore’s evolution and positions us for the next stage of our development through greater access to the capital markets and enhanced profile for our brand.”

Investment banks Credit Suisse and Deutsche Bank are co-ordinating the deal with Lazard acting as chief financial adviser.

Aldermore is the latest in a string of UK lenders to launch, or announce plans to float on the stock market. Virgin Money confirmed its flotation plans yesterday, and is seeking to raise £150m through the offering of at least 25 per cent of its shares.