A flurry of stock-market flotations by “challenger” banks kicked off today with OneSavings announcing plans to raise £41.5 million through a share sale which could value it at up to £600 million.
OneSavings is the former Kent Reliant building society which was rescued with a £50 million cash injection from US private equity firm JC Flowers in 2010.
Billionaire Christopher Flowers, who once described himself as a “low-life grave dancer”, has made a fortune buying and selling financial service companies who got into trouble.
In the UK he bid for Northern Rock, Friends Provident and most recently 341 branches from Royal Bank of Scotland.
OneSavings is a mortgage lender and buy-to-let lender selling most of its loans through brokers and is predominantly funded by retail savings. Andy Golding, chief executive, said: “We have made enormous progress since the bank was created three years ago. A stock-exchange listing is the next natural step.”
At present, JC Flowers owns more than 90% of the business and is expected to take that down to nearer 50% after the flotation next month which could see it collect more than £200 million. TSB, now severed from Lloyds is set to float in the next couple of months as Santander UK, Williams & Glyn’s, Metro Bank, Aldermore and Shawbrook wait in the wings.
OneSavings increased its loan book by 38% to £3 billion last year and has around 142,000 savers.
