British bank Aldermore plans to float on the London Stock Exchange next month.
The IPO could value it at up to £900m and test investor appetite for new lenders aiming to challenge the established big banks.
Aldermore, partly owned by private equity fund AnaCapFinancial Partners, focuses on lending to small and medium-sized businesses and homeowners.
The offer will consist of £75m of new shares, plus an undetermined amount of existing shares, it said today.
Aldermore is part of a wave of so-called "challenger banks" to opt for a listing, with OneSavings and TSB floating earlier in 2014, as they seek to grab market share from major high-street lenders such as Lloyds, Royal Bank of Scotland and Barclays.
Virgin Money is also expected to float this year.
Aldermore said its first-half profit leapt 249% to £18.6m, while lending to businesses and home owners hit the £4 billion mark.
"We're raising more capital to put more fuel in the tank," said the lender's chief executive Phillip Monks.
The company does not intend to pay a dividend in the near term, but will consider doing so from 2017 depending on growth opportunities, it said.
