Atom Bank to squeeze PE for a final £50mn funding round next year
Atom, has been struggling to find a buyer for the past few months and has now decided to delay the IPO until next year in order to increase its chances of finding a buyer. The delay will cost the company £50mn, but it is hoped that this will increase the chances of a successful sale. This is a major setback for the bank, as it was hoping to raise £200-£250mn this year. Stay tuned for more updates on this story as they come in!
Atom Bank, a financial technology company headquartered in Durham, England, has had to delay its initial public offering (IPO) this year due to market conditions. The company initially hoped to raise £50 million through the IPO but has now decided to pursue a private equity funding round instead. This follows intense criticism of the bank’s management from shareholders and the wider investment community.
Atom, headquartered in Durham, England, has been forced to delay its initial public offering
Atom, a digital bank headquartered in Durham, England, has had to delay its initial public offering (IPO) this year due to the global slowdown in the economy. The company is hoping to raise £50 million in a final round of funding next year to bolster its technological infrastructure and expand its customer base. Atom plans to use the funds to increase its lending capacity and bolster its cybersecurity measures. Despite the global slowdown, Atom remains confident in its future and is optimistic about the future of the digital banking sector.
Mark Mullen, chief executive of Atom Bank, said: “In recent weeks we surpassed £4.5bn in retail deposits having made waves with the pricing of our fixed and instant savers, opening up a void between banks such as Atom that pay a fair return on savings and those that are simply unresponsive to the market.”
Why is Atom Bank Struggling?
Atom Bank has been struggling since the beginning of this year due to global economic conditions. The company originally hoped to raise £50 million in its IPO but has now decided to pursue a private equity funding round instead. This follows intense criticism of the bank’s management from shareholders and the wider investment community.
The main issue facing Atom is liquidity. It currently only has £4.5 billion in available assets, which is not enough to meet its short-term lending needs as well as expand into new markets. In addition, its competitors have begun offering higher interest rates on savings deposits and other products, making it difficult for Atom to compete.
The slowdown in the global economy has also made it difficult for customers to access loans and mortgages. This is particularly relevant to Atom since its main business is lending. The company has been forced to delay plans to open new branches and hire more staff as a result of these difficulties.
How does this affect the UK banking sector?
Atom Bank’s problems have had a significant impact on the UK banking sector overall. Banks are generally required by regulators to maintain a certain level of liquidity in order that they can meet short-term credit needs as well as provide services to their customers. This has made it more difficult for Atom and other banks to raise capital, which in turn has increased competition among them.
Atom’s struggles have also heightened concerns about the health of the UK banking sector overall. The UK government may need to step in and provide support if these problems are not resolved soon.