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Lloyds to consider raising share price of TSB IPO

by: Samantha Partington
  • 16/06/2014
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Lloyds to consider raising share price of TSB IPO
Lloyds Banking Group is thought to be considering an upward revision of its share price range following renewed interest in its Initial Public Offering (IPO).

Sky News has reported the bank is expected to announce it is raising the lower range from 220p to around 240p early next week.

The upper limit of the IPO is 290p per ordinary share. 

When the share price was originally unveiled at the start of June, expected to raise £1.275bn, Reuters said this was below TSB’s net asset value of £1.6bn.

A Sky News source said that interest in the IPO had been strengthened after Mark Carney addressed the City in his Mansion House speech when he implied that interest rates could rise from 0.5% sooner than the markets had expected.

City analysts believe that this implies the bank base rate will rise before the end of this year.

The first stage of the float, set for 20 June, will see Lloyds sell a 25% stake in TSB. 

Lloyds is required by European regulators to divest its interest in the TSB branch network by the end of 2015 as a condition of its 2008 government bailout, which gave the state a 25% stake in the bank.

 

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