Atom Bank to raise funds at less than half the 2019 value – Sky News

U.K.-based Atom Bank PLC is close to raising funds at 60 pence a share, which is under half the price it raised equity in 2019, Sky News reported, citing sources close to the situation.

The bank said in February that it would raise £40 million from its existing shareholders.

The funding round, which will halve the lender's valuation, is expected to be completed in the coming weeks, according to the March 11 Sky News report.

However, another insider at the lender told the news website that the bank is yet to finalize the share price of 60 pence.

One of the reasons for a possible fall in the price per share is its existing shareholder, a fund managed by Schroders, which was previously managed by Neil Woodford, not being able to participate, the news website reported.

Additionally, the funding round is reportedly expected to increase the stakes of Banco Bilbao Vizcaya Argentaria SA and Toscafund Asset Management LLP in Atom Bank.

The bank had said it aimed to carry out an IPO in 2022 or 2023.