Atom is launching a £50m fundraising after BBVA pulled back from a full Atom Bank takeover, according to a report from Sky.
Initial reports suggest that BBVA’s decision relates to Brexit uncertainty.
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BBVA holds a stake of nearly 40%. It is opting not to exercise an option to acquire the remainder of the shares. That option to launch an Atom Bank takeover expired at the end of April.
In March 2018 led by BBVA, its largest shareholder, Atom raised a further £153m in equity, bringing the total capital raised to date to almost £400m. BBVA increased its holding to almost 40%.
Atom is now reportedly targeting £50m of new equity. It aims to follow up with a £175m capital injection as part of an IPO in 2022.
Atom was founded in 2014 and launched in 2016 offering savings, business loans and residential mortgage products.
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By GlobalDataIt has postponed plans to launch a current account product.
Atom has registered steady if unspectacular growth in an increasingly crowded market. The 2018 Atom Bank annual report disclosed total retail deposits of £1.4bn. Loans to SMEs and homeowners total £1.2bn.
In fiscal 2018 Atom Bank reported a loss before tax of £53m (2017: £42m).
Total assets grew to £2.0bn (2017: £649m).
