Trading Suspensions Triggered as Stock Plummets More Than 29%
Metro Bank’s Tumultuous Session: Shares of Britain’s Metro Bank underwent two brief trading suspensions early on Thursday in a highly volatile session that saw the stock plummet by over 29% from its previous close. After these suspensions, trading resumed shortly after 9:00 a.m. London time. The London Stock Exchange, where the stock is listed, confirmed that these halts were triggered by their circuit break mechanisms due to the extent of the sharp drop.
Debt and Equity Raising Efforts
The tumultuous trading activity coincided with reports suggesting that Metro Bank was in the process of raising £600 million (approximately $727 million) in both debt and equity. As a challenger bank launched in 2010, Metro Bank currently holds a market capitalization of under £100 million.
Metro Bank released a statement indicating that it is actively exploring options to bolster its capital resources, with a particular focus on a £350 million bond set to mature in October 2025.
Unusual Trading Volume
Notably, investors witnessed an unusually high trading volume of more than 1.6 million Metro Bank shares immediately after the stock market opened on Thursday, a significant departure from the typical trading pattern where fewer than 100,000 Metro Bank shares exchange hands per hour.
Significant Decline in Share Value
Metro Bank shares have experienced a sharp decline, shedding approximately two-thirds of their value since mid-February. This recent bout of volatility and capital-raising efforts underscore the challenges faced by Metro Bank as it navigates the current financial landscape.