LONDON (Reuters) - UK online mortgage bank Charter Court Financial Services is planning an initial public offering in London, the firm said on Tuesday, which a source said would value it at more than 500 million pounds ($645.95 million).
Charter Court, majority owned by investment firm Elliott Management, is aiming for a free float of at least 40 percent via the IPO, it said in a statement.
It will issue 20 million pounds in new shares in addition to a sale of part of the stakes held by Elliott and Charter Court management, the firm said.
Old Mutual Global Investors has provided a letter of intent to buy 100 million pounds of the offering on behalf of funds that it manages, Charter Court said.
Charter Court was set up in 2008 and focuses on UK residential mortgages, operating under the Charter Savings Bank, Prescise Mortgages and Exact Mortgage Experts brands.
It had 4 billion pounds in retail deposits at June 30.
Gross mortgage lending reached 22.1 billion pounds in June, up 9 percent from May and up 3 percent from June 2016, according to UK Finance.
Reporting by Carolyn Cohn and Noor Zainab Hussain; Editing by Rachel Armstrong