Starling Bank is continuing to set the wheels in motion for an Initial Public Offering (IPO) following a recent filing with the UK’s Companies House.
The digital bank’s latest filing reveals it has created a separate holding company and an intermediary holding company which are requirements from the Bank of England to ensure financial safety.
Starling will also need to file and send an admission document to the Financial Conduct Authority (FCA) to list on the London Stock Exchange (LSE), which is reportedly leading the race over New York for Starling’s IPO.
New York was first touted as a potential IPO destination for Starling in July 2025. However, The Times believes London is the frontrunner and is chasing a £4bn valuation for an upcoming funding round before any IPO plans can be put into place.
Starling was reportedly looking for a secondary share sale which would have valued the company between £3.5bn – £4bn as Morgan Stanely were approached to invest alongside existing partners such as Goldman Sachs and Fidelity.
There has been a flurry of IPO talks from some of the other high-profile UK digital banks this year, including Revolut and Monzo.
While Monzo CEO TS Anil has previously shut down IPO talks for now, Revolut has continually looked to raise capital as part of secondary share sales which has seen its valuation to soar as high as $75bn recently.
The LSE has also had to contend with notable UK and European fintechs opting for a New York listing.
Wise, a UK-based cross-border payment company, removed its primary listing from the London Stock Exchange in favour of moving it to the New York Stock Exchange, albeit keeping a secondary listing in London.
“This will better position us for long-term growth alongside future-proofing the bank for ongoing compliance with the Bank of England’s resolution requirements,” said a Starling spokesperson.
Is the US a possibility?
While The Times reports London remains the frontrunner for Starling’s IPO, the bank has been laying the groundwork in the US, fuelling speculation it could opt for a stateside listing
In June 2024, Starling was reportedly exploring the acquisition of a US lending firm to strengthen its credit portfolio. The bank was also seeking a national banking licence as part of its plan to establish a formal presence in the American market.
Sources suggested Starling was targeting a regional lender with around $2bn in assets, ideally one with outdated IT infrastructure that could be migrated onto Starling’s proprietary core banking platform, Engine.
