Metro Bank, which in July 2010 became the first new bank on the UK high street in over 100 years, said it had raised 126m pounds to fund expansion plans.
The bank currently has 12 branches in Greater London but plans to have 200 open in the area by 2020.
Chief Executive Craig Donaldson said demand for the share placement reflected Metro Bank's "unprecedented success in the market".
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"We have ambitious expansion plans, and customer reaction to the Metro Bank model means that we are confident in achieving our ambitions," he said.
"Londoners are flocking to us to open accounts and we've been blown away by local reaction to our style of community banking."
New branches that will be funded by the capital include Brighton, Reading, Hemel Hempstead, Romford, Staines and Epsom, the firm said.
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