The UK’s Metro Bank is to delay the initial public offering (IPO) it had planned for this year after raising £385m ($637m) from past investors.

The money from investors including two major hedge funds, SAC Capital Advisors and Moore Capital, means the lender can put off its floatation on the public stock market until at least 2016.

The so-called challenger bank, chaired and founded by Vernon Hill, also received investment from mutual fund managers Fidelity Investments and Wellington Management Co. and real estate investors Reuben Brothers and Richard LeFrak, among others.

The money raised from this, the lender’s fourth round of funding, is intended to go towards growing its retail, commercial and private banking operations.

After a period of rapid expansion, Metro Bank reported a loss of $100m last fiscal year.

By putting off an IPO the bank and its investors are heavily investing in the hope that the bank will continue to grow its market share and eventually turn a profit.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Metro Bank announced earlier in the month that it will take on 500 extra staff during 2014.

CEO Craig Donaldson said: "Importantly, these aren’t just jobs, they’re long term careers with real progression opportunities for people as we grow.

"At Metro Bank we recruit colleagues for attitude and train them for skills, so that we know our people want to provide the best in service and convenience to our customers."


Related articles:

UK lacks bank IT servicing industry, says Metro Bank chairman

UK’s Metro Bank to add 500 new jobs in 2014

Metro Bank bids for £387.5m investment