CEO Mark Mullen Says Bank Is On Track For “Liquidity Event.”Lender Atom Bank has decided to put off its long-anticipated IPO by at least a year, with CEO Mark Mullen telling The Times that the new goal year for a “liquidity event” is 2024 or 2025.
Mullen’s remarks coincided with Atom Bank’s announcement of a £30 million equity investment round from its major investors, BBVA, Toscafund, and Infinity Investment Partners. The money will be used to fund more loans and spur expansion.
The CEO had earlier indicated that “the financial year 2022/23 is our IPO target” and that the company’s “push to IPO” had only garnered £75 million in February.
Since then, however, the global economy has deteriorated, and both listed and unregistered fintechs have seen declining values, leading to the postponement of several IPOs.
Atom Bank has maintained that it would attain profitability in June 2021 and for several months in 2022, at which point it will break even.
I’m thrilled that BBVA, Toscafund, and Infinity Commitment Partners have increased their position in Atom, bringing the total new capital investment for 2022 to over £100 million, stated Mullen today.
“Our prudent, secured lending model, backed by award-winning retail savings, allows us to make the very most of capital to support income growth and boost customer numbers. This will remain our focus.”
In October, former CFO and co-founder David McCarthy were replaced by Andrew Marshall, named the bank’s new CFO.
The bank said that Marshall would primarily focus on achieving long-term profitability and preparing the bank for a “large capital event in the future,” however the bank was not more precise at the time on the nature or timing of this event.
