Consumers want a ‘friendly’ bank, says Pester

The chief executive of TSB Bank said he was pleased to note the level of investor demand for TSB’s shares, “especially among retail investors, who make up approximately 30 per cent of the IPO allocation”.

Speaking as the bank’s initial public offering went ahead, Mr Pester said: “We are now focused on delivering our strategy of bringing more competition to high street banking across Britain.”

His comments came as Lloyds announced it was selling a larger chunk of the retail bank, with a 38.5 per cent stake up for sale, instead of the planned 25 per cent. The price values TSB at £1.3bn.

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Shares have been priced at 260p, firmly in the upper half of the 220p to 290p price range the company had originally suggested when the IPO was first announced to the market.

Shares jumped more than 11 per cent in value on the first day of trading.

Richard Hunter, head of equities at Bristol-based Hargreaves Lansdown, said: “The share offer proved extremely popular so TSB Banking Group scaled back applications.

“Retail investors have been allocated in full up to £2,000, with some scaling down above that amount, but all have been rewarded by a 13 per cent premium to the offer price in early trade.”