(Reuters) -British bank Shawbrook is planning an initial public offering in London, it said on Monday, in what could be one of the city’s biggest listings in years.
In a statement, the alternative lender said the planned IPO would help boost its profile in Britain and fund its growth plans, as well as allowing its sole shareholder, Marlin Bidco, to sell down some of its stake. Marlin Bidco is a vehicle controlled by private equity firms BC Partners and Pollen Street.
An IPO could value Shawbrook at as much as 2 billion pounds ($2.69 billion), a source told Reuters last week.
The listing will mark a return to the public markets for the company after it was taken over by BC Partners and Pollen Street in 2017. Marcelino Castrillo, chief executive officer, said the IPO was a milestone for the firm.
“We have achieved real scale, and our current markets are large and growing, supported by attractive tailwinds,” he said. “We also see a significant opportunity to bring Shawbrook’s offering to new types of customers.”
Shawbrook said it intends to sell shares to retail and institutional investors and will have a free float of at least 10%. It also expects to be eligible for inclusion in London’s FTSE indices.
The bank’s private equity owners had previously explored a number of deals with rival lenders over the past two years, including Metro Bank and Co-op Bank, Reuters previously reported.
Following a barren patch for new listings and fears over the health of Britain’s capital markets, London saw a flurry of activity late last week, with LED red light firm Beauty Tech Group listing and canned tuna company Princes confirming its IPO plans.
Policymakers and regulators overhauled London’s listing rules last year but a number of large London firms have still swapped their primary listings to foreign markets in search of higher valuations, including fintech company Wise.
($1 = 0.7437 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Charlie Conchie in London; Editing by Mrigank Dhaniwala, Kirsten Donovan)
