Challenger bank Shawbrook said to be exploring £1bn London listing

The owners of challenger bank Shawbrook are reportedly exploring plans to list it on the London Stock Exchange less than five years after taking it private.

According to Sky News, private equity firms BC Partners and Pollen Street Capital - which each own 50% of Shawbrook - are holding talks with investment banks about a potential initial public offering.

Sky cited sources close to the situation as saying that discussions are at an early stage and could result in a sale to another bank or financial investor, or in the current shareholders opting to retain control for a longer period.

Shawbrook was launched a decade ago in the aftermath of the 2008 financial crisis, with a focus on lending to small and medium-sized businesses. The bank floated in London in 2015 with a valuation of £725m, and was taken private two years later in a £805m deal.

Sky sources suggested it could be worth well over £1bn in a 2022 flotation or sale, with the company having more than doubled its profits since BC Partners and Pollen Street Capital invested.

One of the insiders said it now had a strong technology platform, having invested heavily in systems in recent years.