Member Article

Lloyds Bank expects to make £455 million on TSB float

Lloyds Banking Group plc has announced the pricing of the initial public offering of TSB.

The offer price has been set at 260p per TSB ordinary share, valuing it at approximately £1.3 billion. Gross proceeds realised by Lloyds will be £455 million.

Due to significant investor demand for TSB ordinary shares, the offer size has been set above the expected offer size of 25%.

The offer comprises 175 million existing TSB ordinary shares being sold by Lloyds (prior to any exercise of the over-allotment option), representing 35% of the 500 million TSB Ordinary Shares that will be in issue at Admission

Following Admission, it is expected that Lloyds will hold, through Lloyds Bank plc, 65% of TSB’s Ordinary Shares (assuming no exercise of the over-allotment option).

As stabilising manager on behalf of the Underwriters, J.P. Morgan Cazenove has been granted an over-allotment option by Lloyds, exercisable no later than thirty days from today, over up to 17.5 million TSB ordinary shares, representing 10% of the Offer

Conditional dealings in TSB Ordinary Shares will commence on the London Stock Exchange at 8.00 am today

Admission and the commencement of unconditional dealings in TSB shares are expected to take place at 8.00 am on 25 June 2014 under the ticker TSB.

António Horta-Osório, group chief executive of Lloyds Banking Group, said: “The successful initial public offering of TSB is an important further step for Lloyds Banking Group as we act to meet our commitments to the European Commission.

“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%.

“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.”

This was posted in Bdaily's Members' News section by Clare Burnett .