Shawbrook Bank is targeting an initial public offering later this year, Money Marketing understands.
The bank was founded in 2011 by David Johnson when it rebranded from Whiteaway Laidlaw Bank.
It is a specialist savings and lending bank offering buy-to-let, bridging and commercial loans with all lending arranged through brokers.
Lending business has grown to around £1.5bn today as the business plans a recruitment drive for this year.
Shawbrook managing director of commercial lending Stephen Johnson had 28 employees at the end of 2012, rising to 47 by the end of 2013 and he is looking to add an additional 20 people over the next year.
One source says: “They are loading up on volume to make themselves look bigger and that is often a precursor to an IPO.”
Another source says: “IPOs are the flavour of the month at the moment to sell part of the business and then agree the whole sale subject to good business levels. I think the IPO is not relevant to Shawbrook increasing their market share though because they have a very positive owner with an excellent team.”
Aldermore Bank is also considering an IPO this year after raising £40m in new capital last December.
Shawbrook declined to comment.