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Monzo IPO

How to trade on Monzo’s IPO

There has been speculation that British online neo-bank Monzo is planning an IPO. Find out more about the company's history and financials.

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When is Monzo’s IPO date?

Although Monzo hasn’t set an IPO date yet, it may debut on the stock market in the next 12 months.

Monzo’s potential share price and valuation

While an offer price for Monzo shares has not been set, the business was valued at $5bn in 2024 after a funding round led by Alphabet-owned CapitalG raised $430m.

Previously, the company was valued at £2bn after a funding round in 2019 gave it ‘unicorn’ status in the UK. Then, following a difficult 2020 due to Covid-19, Monzo’s valuation dropped to £1.24bn, even though the company raised another £60m in new funding in December that year. 

How to trade Monzo’s IPO

1. Register for an account

You can access 10,000 shares on our trading platform, including Monzo once the company has gone public.

2. Choose your product

Decide whether to spread bet tax-free* or trade CFDs on Monzo’s IPO.

3. Pick a strategy

You can either open a long position if you think that Monzo’s value will increase, or a short position if you think its value will fall. Please note that some trading restrictions may apply on initial trading.

4. Apply risk-management tools

Stop-losses are an effective tool to close you out of volatile positions and keep losses to a minimum.

How is Monzo performing financially?

Monzo reported its first full-year profit in its nine-year history in March 2024, with a pre-tax profit of £15.4m. The bank hit monthly profitability for the first time in the first two months of 2023 after a spike in lending. 

What is appealing about a potential Monzo IPO?

Monzo turned its first annual profit in 2024 and its user base is growing – the bank now has 9.3 million personal customers, up from 7.4 million in 2023, according to its 2024 annual report.

Monzo is focusing on expanding its presence in the US, a much larger market than the UK, which could broaden its growth potential.

Who are Monzo’s competitors?

Monzo’s main competitors in the online neo-bank sector include Revolut, Monese, N26, Stripe and Starling. None of these companies is publicly traded, so Monzo could gain a competitive edge if and when it floats. Some of Monzo’s rivals are reportedly in talks about a public listing, so keep an eye out for updates as a rival IPO could affect Monzo’s share price and valuation.

Listed fintech companies in the online payments sector include PayPal, Wise and Block​​​. All of these stocks are available on our platform and can be traded with a spread betting or CFD trading account.

What are the risks of trading on Monzo?

Fintech start-ups may be more exposed to risks in the event of an unexpected crisis, such as the Covid-19 pandemic, during which Monzo’s revenues fell by half.

Some banking analysts suggest that Monzo may struggle to increase its revenue unless it finds a way to earn commission or interchange fees (from products such as credit cards and mortgage loans). Therefore, a change in business model may become necessary.

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FAQS

How can I trade on Monzo shares?

To start trading on Monzo shares when the company goes public, open an account and choose whether you want to spread bet or trade CFDs.

How can I get notified when Monzo’s IPO is due?

You can set up trading alerts on your account to be notified via desktop or mobile device when Monzo stock is live on our platform once it goes public.

What other UK tech companies are due an IPO?

View our list of UK tech stocks to watch, including start-up companies like Hopin, Revolut and Onfido that are in talks to debut on the stock market.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Trade on Monzo stock with us

Register for an account to get started. Once the shares are available on our platform, you will be able to spread bet or trade CFDs on Monzo's share price.