RE: I told you so25 Jun 2021 11:53
For those of you who aren't too sure how metro banks initial valuation came about, here it is. Sums up why the initial valuation was complete pie in the sky....
In 2016, Metro Bank took the unconventional route of floating without a full public offering. Deciding there was no need to go through the costly and time-consuming IPO process, the challenger bank chose instead to step directly on to London Stock Exchange’s premium segment via introduction. New investors didn’t need to be sold the story because it could rely on long-term backers loyal to its flamboyant founder and chair, Vernon Hill.
Things didn’t go exactly to plan. Metro’s pre-float private placement fell short and the direct approach met with resistance in the City, where prospective investors complained that without a roadshow to pull apart the business model, they were unable to reach consensus on a valuation.