Challenger Bank Aldermore in £800m Flotation

Aldermore Group, the challenger bank that lends primarily to small businesses, has announced its price range for a flotation on the London Stock Exchange.

The mid-point of its price range - 241p - will value the lender at about £800m.

The bank said it had set the price range for its offer at between 217p and 265p per ordinary share and plans to make its stock market debut on 17 October. It hopes to raise an extra £75m from the share sale, which is aimed at institutional investors.

Aldermore was launched five years ago and has grown quickly, catering to a void estimated at many billions-worth of lending required by small and medium sized firms.

The bank's lending is carried on mainly through intermediaries and is increasing through online channels, rather than via a traditional branch network.

Aldermore was initially backed by Anacap, the private equity firm that specialises in financial serives. It had has grown from 50 employees to 800 staff and 160,000 customers, with 12 regional offices and about 14,000 intermediary agents.

Its shareholders include Morgan Stanley Alternative Investment Partners and Goldman Sachs Asset Management.

As well as financing for small businesses, the bank aims at commercial and residential mortgages, which it says are poorly served by the incumbent banks.