Challenger bank Alex Bank’s kicked off its search for $20 million in fresh funding, so it can beef up its regulatory capital and accelerate lending growth.
Alex Bank’s in talks with investors about a $20 million raising at a $130 million pre-money valuation, potentially its final stop on the way to an initial public offering and ASX listing.
Alex Bank’s Simon Beitz (CEO), left, and CFO Craig Fenwick are pitching investors for fresh funding. Michael Quelch
Undeterred by a global banking crisis, Alex Bank told potential investors it had recently received its full banking licence, which would allow the bank to scale rapidly via the introduction of deposit funding to the balance sheet.
Investors were told to the retail-focused bank wanted to grow its prime lending book to $200 million by December, up from $49 million in settlements to date, match funded with about $175 million of deposits.
Its advisers, Clinton Capital Partners and Henslow (a newcomer to the Alex Bank ticket), were lining up investors for calls this week and next.
They made an eight point pitch in an email seen by Street Talk, including:
The raising was first reported by The Australian Financial Review on Monday. The fintech has raised about $70 million to date.
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