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Shawbrook Group PLC on Monday confirmed plans to list on the Main Market of the London Stock Exchange which could value the business at around £2 billion. The digital banking platform, founded in 2011, specialises in mortgages for professional landlords, property investors, and individual homeowners, as well as motor finance. The lender offers lending products and services through its Commercial and Retail franchises, which operate across four lending segments, small & medium-sized enterprises, real estate, retail mortgage brands and consumer finance. Shawbrook intends to publish a registration document on Monday, the first formal step towards an initial public offering. Shawbrook believes that an IPO will position it for the next stage of ‘evolution’, supporting its ambitious growth plans. It hopes the IPO will further enhance Shawbrook’s profile and brand recognition as well as providing the lender with access to a wider range of potential sources of capital. Shawbrook has grown its loan book to £17.0 billion as at June 30 from £1.4 billion as at the end of 2013. Over the same period, the lender has delivered growth in its underlying pretax profit at a compound annual growth rate of 30% and a 20% median adjusted return on tangible equity. Shawbrook said it has a ‘strong’ regulatory capital position with a common equity tier 1 ratio of 13.1% as at June 30, a regulatory capital surplus of around £363 million in excess of its current requirement. The group expects its CET1 ratio to remain within its target range of between 12% and 13%. Should Shawbrook proceed with an IPO, the CET1 ratio is expected to be in the middle of the target range on admission. Looking ahead, Shawbrook aims to continue its ‘trajectory of high-growth and high-returns’, with a target to almost double the size of its loan book to around £30 billion by the end of 2030. Over the medium term, the group’s ambition is to achieve mid-to-high teens growth per annum in underlying pretax profit and an adjusted return on tangible equity in the high teens. The company’s chief financial officer is Dylan Minto, while chair is John Callender. Chief Executive Officer Marcelino Castrillo said an IPO ‘would mark an important milestone in our journey.’ ‘We have achieved real scale, and our current markets are large and growing, supported by attractive tailwinds. We also see a significant opportunity to bring Shawbrook’s offering to new types of customers,’ he added. The IPO will comprise new shares to be issued by the company and existing shares to be sold by its existing sole shareholder, Marlin Bidco Ltd. The offer will be made to institutional investors with a separate retail offer. Shawbrook has engaged Ardea Partners International LLP as financial adviser, Goldman Sachs International as sponsor, joint global coordinator and joint bookrunner, Barclays Bank PLC as joint global coordinator and joint bookrunner, and Stifel Nicolaus Europe Ltd, Deutsche Bank AG, and UBS AG as joint bookrunners. Last Wednesday, the Financial Times said an IPO could value Shawbrook at around £2 billion. The news is another welcome boost for the London market coming soon after Princes Group, the tinned food producer, unveiled its own plans to go public. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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