Monzo IPO: Digital bank plans stockmarket float with £6bn valuation

Monzo is gearing up to appoint bankers to help with a potential stockmarket listing, reports suggest. 

The digital bank is looking to formally appoint bankers to work on a stockmarket float which could see Monzo valued at £6billion. 

Morgan Stanley is likely to be handed a key role in brokering the deal. 

The Wall Street giant is one of a number of banks working with Monzo on a series of meetings with key investors, in a sign that early plans could be underway for an initial public offering (IPO). 

Bankers could be formally hired to work on the listing within months ahead of an IPO which could take place as early as the first half next year.

The timing, size and location of the float are yet to be agreed, according to a report from Sky News. 

London is currently regarded as the most ‘likely location’ for a listing – which would be a boost to the London stockmarket if it goes ahead – rather than New York, but this will depend on market conditions. 

Monzo, launched in 2015, is now profitable and it offers current accounts and savings accounts as well as pensions and investments. 

Monzo has more than 11million retail customers and 600,000 business banking customers. 

It employees 4,000 people. 

It was launched as a challenger to the incumbent high street banks and rivals include other digital banks Revolut, which has a similar-sized customer base, and Starling which has over 4million current account customers. 

Last year it raised £500million from a group of investors in a transaction that valued the business at £4.1billion. 

Monzo declined to comment when contacted by This is Money.