You are here: Home - News -

NAB announces Clydesdale Bank share price for February IPO

  • 18/01/2016
  • 0
NAB announces Clydesdale Bank share price for February IPO
Shares in Clydesdale Bank are scheduled to go on sale on 2 February priced between 175p and 235p as parent company National Australia Bank (NAB) pursues a demerger with the Scottish lender.

The Initial Public Offering (IPO) has valued CYBG, the holding company for Clydesdale set up to facilitate the split, at between £1.54bn and £2.07bn.

NAB wants to sell 75% of shares in Clydesdale to NAB shareholders with the remaining 25% of stock to be sold to institutional investors through the IPO. It is proposed that CYBG shares will be listed on the London Stock Exchange.

For the demerger to be approved by the Prudential Regulation Authority (PRA) NAB had to set aside a provision of £1.7bn for Clydesdale to protect itself from future losses caused by payouts to customers for misselling.

The Financial Conduct Authority fined Clydesdale Bank over £20m for Payment Protection Insurance (PPI) complaints handling between May 2011 and July 2013. The regulator said the bank had failed to take into account all relevant documents when making a decision on the outcome of the PPI complaint.

The shortcomings of Clydesdale’s complaint-handling process were exacerbated when it was revealed that between May and July 2013 the bank provided false information to the Financial Ombudsman Service when asked for evidence of the records it held on its PPI policies.

There are 0 Comment(s)

You may also be interested in

Read previous post:
A man hands over some keys
Landlords own more housing wealth than residential mortgage-holders – Savills

After a 55% increase in the Private Rental Sector (PRS) last year, landlords now own more property wealth than mortgaged...