OakNorth rumoured to be working on a $300m secondary offering of its shares

UK challenger bank OakNorth is reportedly in the process of preparing a secondary offering to enable investors to cash in on their holdings, according to Sky News.

Sources speaking with Sky News said that the neobank was in talks with advisory firm FT Partners was coordinating the upcoming $300m share sale.

The sale would be for existing shares. OakNorth most recently raised money in a round led by the SoftBank Vision Fund in 2019.

OakNorth holds a special position in the the neobank space, being one of the few ones that have actually recorded a profit.

The founder Rishi Khosla has said it was able to do that within the first six months’ of the scaleup’s existence.

In a recent interview, Khosla said that the key to its success was simply to avoid spending money it couldn’t get back.

The fact that it the founders were able to tap into their own savings from selling their previous venture Copal Amba also played its part in the company’s success as it enable the bank to avoid relying heavily on venture capitalists.

In 2019, its pre-tax profits were £65.9m, according to Sky News.

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