UK’s Metro Bank to delay IPO after raising £385m from investors

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 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.

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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."

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