Connect with us

Hi, what are you looking for?

Investing

Atom Bank eyes New York IPO in major snub to London

UK digital lender Atom Bank is eyeing up a listing in New York in what will be a major blow to London’s efforts to promote itself as a premier destination for tech IPOs.

Durham-headquartered Atom, founded in 2013 by Mark Mullen, is set to float in New York via a £700m merger with a special purpose acquisition company set up by Donald Trump’s former commerce secretary Wilbur Ross, Sky News first reported.

The terms of the deal would see the digital lender merge with Ross Acquisition Corp II and would raise about £150m through a so-called PIPE – a private investment in public equity.

Plans for the deal are already at an advanced stage, sources told Sky News, but there was no guarantee the deal would go ahead as recessionary fears and soaring inflation batter the public markets.

Atom’s shift onto the public markets has long been the subject of speculation, with boss Mark Mullen saying a £75m cash injection in February was “a fundamental next step on our journey toward IPO”.

The firm claimed in February that no decision had been made over a destination for the floatation, however.

The SPAC was listed in spring of last year by Ross, who has been a prominent financier on Wall Street for decades and helped shape the US government’s ties with China during his time working in the Trump administration between 2017 and 2021.

Any deal will be a major blow to London’s efforts to promote itself as an international listings capital.

Politicians have launched a charm offensive in recent months to try and woo more tech firms and fintechs into floating in London, with City Minister John Glen meeting bosses in February in a bid to sell London as a place to float.

Russ Shaw, chief of Tech London Advocates, said that a US listing for the firm would be “disappointing”.

Shaw added: “Although is it great to see UK fintech Atom Bank potentially prepare to list on the public markets, it is disappointing – if true – to see a home-grown fintech opt for a SPAC (Special Purpose Acquisition Company) listing in the US versus a listing on the London markets,” he said.

“With its customer base and business anchored in the UK, a London listing by Atom Bank would have been another positive milestone in supporting and strengthening the growth of the UK fintech ecosystem.

Shaw called for decision makers to double down on the Hill Review recommendations, laid out last year to boost London’s appeal as a listings capital, and include making the London markets more attractive to SPACs as an option.

Plans for a SPAC merger for Atom come despite a slowdown this year as regulators ramp up scrutiny of the acquisition vehicles in the US, and firms pullback from IPOs amid market volatility.

After a frenzy of floatation in 2021, just 78 SPAC listings were issued in the three-month period ended March 31, with average deal size valued at just half of what it was last year, according to Pitchbook.

Analysts at Pitchbook said companies were pulling back from SPACs amid a wider IPO slowdown.

“In the same way that companies pull IPO plans rather than list during a negative pricing environment, we believe potential SPAC targets may opt to delay or forgo any negotiations until there is a clearer picture of the markets,” analysts at Pitchbook said.

Read more:
Atom Bank eyes New York IPO in major snub to London

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

Post Office collection and cash delivery workers are to stage a one-day strike later this month in a dispute over pay. Members of the...

Investing

UK consumers cut back on credit card borrowing in May amid fears over rising interest rates and a slowing economy driven by a cost...

Investing

The bank said that it was introducing a £1,200-a-year pay increase from August 1, which would start to show in next month’s pay packets....

Investing

Postmasters caught up in the Horizon IT scandal say that they are still being “left in the dark” about a compensation package after the...

Economy

Expenditures for environmental protection declined by 4.6% year on year in 2021, data from the Philippine Statistics Authority (PSA) showed. The statistics agency’s Compendium...

Investing

BT staff have voted for their first national strike in 35 years, which is expected to affect customers across the country having broadband services...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.