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 as the business plans a recruitment drive for this 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.”
Aldermore Bank is also considering an IPO this year after raising £40m in new capital last December.
Banking consultant Mehrdad Yousefi says: “It is not surprising.
“The main objective is to raise funds so that banks like Shawbrook and Aldermore can grow rapidly as the economic recovery picks up.
“It is also an opportunity for City investors to take a stake in challenger banks.”
Shawbrook declined to comment.