New retail bank 86 400 rattles tin for fresh equity
Investment bank Morgan Stanley has kicked off a $100 million-plus private funding round for the country’s newest bank 86 400.
Hot on the heels of 86 400 receiving an unrestricted banking licence, it is understood Morgan Stanley’s dealmakers have sent details to potential equity investors including local and offshore institutions, family offices and high net worth clients.
The pitch is about getting in right as 86 400 – a new digital-only bank named for the number of seconds in a day and the number of seconds every day its services will be available to clients – is available to customers for the first time.
The bank’s website is live and its app is due to be in app stores in the coming fortnight.
But banking is a capital intensive business. And while 86 400 has been funded by major shareholder Cuscal – also an Authorised Deposit-Taking Institution – it has committed to shake up its share register and bring in new investors to handle the capital load.
86 400 wants to raise $250 million in fresh funds to cover its first three years in operation. The bank tapped Morgan Stanley Australia in May to help with the task.
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