Aldermore Cancels IPO on Global Stock Market Deterioration

Britain's Aldermore bank has revealed that it has cancelled its London initial public offering after citing deteriorating global stock markets for its decision.

In a statement, the challenger bank said that "due to recent deterioration of global equity markets, [our] board and shareholders have elected not to proceed at this time with the IPO of Aldermore."

"Aldermore continues to perform strongly, with excellent organic loan growth and a proven track record of delivery through its modern, digital platform. AnaCap, as a long term investor, will continue to support the next phase of its development," it added.

The Peterborough-based bank, which was founded in 2009, boosted its balance sheet to £4.2bn (€5.1bn, $7bn) and pre-tax profits increased to £22.4m in 2013, up from £1.5m the previous year.

In 2013, it boosted its assets by 66% after customers continue the flood the challenger bank in a bid to find an alternative to Britain's biggest four financials.

Aldermore also increased its lending to SMEs by 53% and by 76% to homeowners last year as customer deposits rocketed by 61% to £3.4bn.

It was originally founded by former Barclays executive Philip Monks with backing from private equity firms AnaCap and Morgan Stanley Alternative Investment Partners.

It initially planned to sell around £300m of shares by 16 October and list the following day with a market value of about £800m.