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4w ago

Starling Bank Preps Secondary Share Sale Targeting Up To £4 Billion Valuation

The move would give early investors a chance to sell as the lender rebuilds confidence after a 2023 valuation cut.

Starling Bank logo is seen in this illustration, July 24, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

Overview

  • Starling is in talks with Morgan Stanley and Rothschild to run a secondary sale that could price the bank between £3.5bn and £4bn.
  • Management intends the sale to provide liquidity for existing shareholders and bring new investors onto the register.
  • The bank recently bought Ember to bolster SME services, with Ember’s HMRC‑recognised accounting software set to become exclusive to Starling.
  • Starling is prioritising US expansion, exploring a potential bank acquisition and positioning its Engine platform to re‑platform any target, with CEO Raman Bhatia eyeing £100m in near‑term revenue from the region.
  • Recent results show pressure on profitability, with 2024 pre‑tax profit at about £223m versus ~£301m a year earlier, while Engine contributed £8.7m to group income, up 284% year on year.