Starling IPO: what you need to know and how to buy shares
Here’s everything you need to know about the highly anticipated initial public offering (IPO) of British bank Starling
When could the Starling IPO happen?
It’s not yet clear when Starling Bank will launch. Back in 2021 former CEO Anne Boden announced an IPO was 1-2 years away but given the quiet IPO market it remains to be seen.
That said, it’s rumoured that the company are looking for someone with experience running a public company as they look to replace Anne Boden, which suggests an IPO is still on the cards.
As Starling Bank is a UK-based company, the default exchange for the launch would be the London Stock Exchange (LSE) but, given the uncertain economic conditions, a US offering is possible if things don’t improve.
Find out more about upcoming IPOs
Starling IPO: how to buy shares
Once Starling shares do launch, here’s how you can buy some:
1. Research Starling
2. Decide whether you want to trade or invest
3. Create a live account
4. Search for Starling Group on our app or platform and open a position
With us, you can either invest in Starling shares by opening a share dealing account or trade them via spread bets or CFDs.
Trading with either spread bets or CFDs enables you to take advantage of rising and falling markets by going long or short. You can also trade with leverage, this is where your trade size is larger than your initial margin meaning you could gain or lose money faster than expected. It’s therefore important to develop a risk management strategy to help minimise losses.
Access to the primary market and the commission you’re required to pay will vary depending on where Starling will launch and the instrument you choose to trade.
Find out more about how to trade IPOs
| Share dealing | CFD trading | Spread betting | |
| Access to the primary market | With certain UK shares | No | No |
| Commission for primary market | None | N/A | N/A |
| Commission on UK shares post-listing | £3 if you've traded 3+ times in the previous calendar month, otherwise £8 | £10 | None |
| Commission on US shares post-listing | None if you've traded 3+ times in the previous calendar month, otherwise £10 | $15 | None |
What does Starling do?
Founded in 2014, the British bank aims to make banking easier and more accessible than traditional ones.
With no virtual branches, transactions are completed via their mobile app or website, so there’s no need for human interaction.
On top of their standard current accounts, the company offer a range of additional features including instant notifications whenever money enters or leaves your account, spending insights which provide an analysis of your monthly spending habits, and the ability to set up a standing order or direct debit from one of your saving accounts.
The company also grant access to third-party providers such as Wealthify, TransferWise and PensionBee.
Who are Starling's competitors?
Within the digital banking space, Starling’s main competitors are Revolut and Monzo. Although both competitors have a larger market cap than Starling, with 3 million customer accounts Starling is still a major player in the UK fintech banking sector.
The company also aim to compete with more traditional banks such as Barclays and HSBC within the next 5 years. Although this target seems a long way off, the company’s % market cap has increased consistently for the past 3 years.
Find out more about the Revolut IPO
What could Starling's stock price be?
Starling currently has an estimated valuation of £1.5 billion.
There is not yet any indication as to what the share price may be. Details of this will be revealed closer to the launch.
What's the outlook for Starling's IPO?
The outlook for Starling’s IPO remains to be seen.
The company have just reported their first profitable year with pre-tax profits of just over £32 million, setting them up well for an IPO.
That said, economic conditions around the time of the launch could impact the IPO’s success. So, it’s worth keeping an eye on the inflationary environment when the company launches.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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