NewDay, the consumer credit provider, has hired a quartet of banks to advise on a London stock market listing expected to value it at more than £2.5bn.

Sky News has learnt that NewDay and its owners have appointed Bank of America, Morgan Stanley and Citi as joint global co-ordinators of a flotation that is being lined up for the first half of next year.

Investment bankers at HSBC are also involved in the deal, City sources said on Friday.

An initial public offering (IPO) of NewDay would enable a partial exit for Cinven and CVC Capital Partners, its private equity backers since early 2017.

One source close to the business said that NewDay’s status as a regulated entity while offering a Buy Now, Pay Later (BNPL) product – branded Newpay – would be a key differentiator for public market investors during a period of intensifying scrutiny of the sector.

NewDay was responsible for issuing nearly 20% of the UK’s credit cards last year, and recently launched Bip, which it claims is the country’s first cardless credit product.

It describes itself as one of the UK’s most inclusive lenders, and says it has helped two million customers improve their credit scores in 2020.

FTSE 100 hits 18-month high as it shrugs off supply chain and inflation worries

Fire-damaged power link between UK and France won’t be fully restored for two years says National Grid

Job adverts soar to record high as labour market continues flux

The company is run by John Hourican, the former Royal Bank of Scotland executive who helped to stabilise the lender after its £45bn taxpayer rescue in 2008, and chaired by Sir Mike Rake, the City grandee.

It runs co-branded credit cards with retail giants‎ including Amazon and the online electrical goods retailer AO World.

NewDay declined to comment.

Related posts:

Former banking lobby chief Jones joins shared branches start-up OneBanks Lloyds chief has his work cut out as he prepares for one of banking’s toughest jobs Amazon boss (and world’s richest man) Bezos backs tax hike after Biden criticism HSBC could move more than 1,200 staff to permanent work-from-home contracts Pound strengthened after weekend election results Vodafone to reintroduce roaming charges for UK customers in Europe Heathrow pleads for US to ease travel restrictions as passenger numbers creep up Halfords reports uphill climb for cycling sales as supply chain disruption bites WizzAir plots route to growth as CEO eyes £100m bonus Pest control giant looms as Rentokil agrees takeover of US rival in £5bn deal Motor Fuel Group owners jumpstart £5bn sale of petrol retail giant CVC Capital lines up veteran Lucas to spearhead $15bn stock market float