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Lloyds to raise £455m from increased TSB offer

Lloyds Banking Group says it will now raise £455m with its initial public offering of TSB shares after better than expected demand from investors, FTAdviser sister publication FastFT reports.

As banking editor Martin Arnold reported exclusively last night (19 June), Lloyds has increased the offer size and set the price at 260p a share - slightly above the mid-point of the initial 220p-290p range.

Lloyds said in a statement this morning (20 June) that the offer size had been increased from 25 per cent to 35 per cent, or 175m of the 500m TSB shares in issue at admission. At the offer price, the bank will have a market capitalisation of around £1.3bn.

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Gross proceeds will be £455m before any over-allotment option. Around 30 per cent of the offer has been allocated to retail investors.

Conditional dealings under the ticker TSB begin at 8am today and unconditional dealings start on June 25.

António Horta-Osório, Lloyds chief executive, said: “The significant investor demand for shares in TSB, which reflects investors’ confidence in the prospects for the business, has meant that we have been able to set the offer size at 35 per cent.

“TSB has a national network of branches, a strong capital base, robust liquidity and significant economic protection against legacy issues. It is already operating on the UK high street and is proving to be a strong and effective challenger, further enhancing competition in the UK banking sector.”