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Shawbrook Group PLC on Tuesday said its initial public offering could value the business at as much as £2 billion, as the upturn in listing activity in London continues. 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. On Tuesday, Shawbrook said the price range for the offer has been set at 350 pence to 390 pence per share, implying an estimated market value of between £1.8 billion and £2.0 billion. The final offer price is expected to be announced on October 30 - Thursday next week - with trading on the London Main Market expected to begin on November 4. The company’s sole existing shareholder, Marlin Bidco Ltd, is expected to sell between 79.9 million and 81.1 million existing shares, worth at least £280 million, while Shawbrook is expected to issue between 12.8 million and 14.3 million new shares to raise around £50 million of gross proceeds for the company. In addition, up to a maximum of 14.1 million shares may be sold pursuant to an over-allotment option. Following admission, it is expected that around 18% of shares will be held in public hands if the over-allotment option is not exercised, and 21% if the over-allotment option is exercised in full. The offer will be made to institutional and retail investors. The retail offer will have a minimum application amount of £250. 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 Deutsche Bank AG, Stifel Nicolaus Europe Ltd and UBS AG as joint bookrunners. 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. The lender’s offer comes amid an uptick in activity in London. Consumer staples company Princes Group earlier this month stated its intention to float on the Main Market of the London Stock Exchange, while Cheshire, England-based seller of at-home beauty treatment technology Beauty Tech Group made its stock market debut in London in October. On Monday, the London-based technology-led entertainment business Winvia Entertainment PLC said it plans to raise £40 million via a placing as part of plans for an initial public offer in November. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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