Monzo, the digital bank which counts one in five British adults among its customers, is closing in on the appointment of investment bankers to spearhead a stock market listing valuing it at more than £6bn.
Sky News has learnt that Monzo is working with Morgan Stanley, the Wall Street giant, on a series of meetings with potential investors ahead of an initial public offering which could take place as early as the first half next year.
People close to the company said this weekend that bankers would be formally hired to work on the listing within months, with Morgan Stanley now expected to be handed a key role on the deal.
The timing, size and location of an IPO are still to be determined and will depend on market conditions in London and New York, both of which have been buffeted by Donald Trump’s introduction of swingeing trade tariffs.
However, London is currently seen as the most likely listing venue for Monzo by board members and investors, according to people close to the situation.
The company, which saw its valuation soar to £4.5bn last year after primary and secondary share sales, is considering a further sale of existing shares to allow early investors and employees to cash in, although a decision to proceed has not yet been taken.
Monzo has more than 11m UK retail customers, making it the seventh-largest British bank by customer numbers, and 600,000 business customers.
Trade war: Trump floats China tariff cut to 80% ahead of talks
Money blog: Great British Menu judge Lorna McNee on ‘ridiculously good’ supermarket dessert, a wine list tip and influencers who ‘think they’re Gordon Ramsay’
Trump’s tariffs hit the West’s busiest port – with traffic down by nearly a third
Founded a decade ago, it has become one of Britain’s most successful, and valuable, fintech companies.
It employs close to 4,000 people.
Last year, it raised more than £500m by selling newly issued shares to a group of investors led by Capital G, a division of Alphabet-owned Google.
That primary share sale valued the business at £4.1bn.
An IPO, including any new capital raised, would be likely to value Monzo at more than £6bn, and potentially in the region of £7bn, according to banking sources.
Last year’s secondary share sale saw existing Monzo investors StepStone Group and GIC, the Singaporean sovereign wealth fund, buying stock from employees.
The company is now profitable and has diversified into investments and instant access savings accounts.
It has also launched pensions products and accounts aimed at under-16s.
Read more from Sky News:
Trump floats China tariff cut
Money blog: TV chef on ‘ridiculously good’ supermarket dessert
Monzo is among a new generation of banks which have emerged since the last financial crisis and begun to accumulate a significant share of the UK retail banking market.
Rivals include Starling Bank and Revolut, which was valued at $45bn in its last fundraising and was awarded a banking licence by British regulators last year after a protracted process.
Monzo has recovered spectacularly from a difficult period in 2020 when it emerged that the City watchdog was investigating it for potential breaches of anti-money laundering and financial crime rules.
It has revamped its corporate structure as it pursues an international expansion aimed at enticing new investors to its strategy for long-term growth.
Follow our channel and never miss an update.
The company has been exploring acquisition opportunities in the US and Europe, although a major deal is not thought to be imminent.
Monzo Bank Holding Group was established to avoid the company facing punitive capital treatment by British regulators as it launches in new overseas markets.
Other Monzo investors include the Chinese group Tencent, Passion Capital, Accel, General Catalyst and Hedosophia.
Monzo is run by TS Anil, its chief executive, and chaired by Gary Hoffman, the banker who salvaged Northern Rock after its nationalisation in 2008.
This weekend, a Monzo spokesperson declined to comment.
