Metro Bank shares crash over 25% after reports of capital raise

Metro Bank shares tanked more than 25% on Thursday as investors dumped the stock after press reports said the British mid-sized lender is in talks for an urgent capital raise to bolster its balance sheet.

People familiar with the situation told Reuters on Wednesday that Metro Bank was exploring options to raise as much 600 million pounds ($728.52 million) in debt and equity financing.

Shares have lost about two thirds of their value since mid-February. As of Wednesday's close, Metro Bank has a market capitalization of 87 million pounds ($106 million). The broader UK Bank index was little changed.