TSB off to a flotation flyer as private investors like to say yes on high street


Shares in TSB soared nearly 12 per cent on their stock market debut yesterday, netting several hundred pounds profit for the private investors who piled in to the float.

Lloyds Banking Group, which was ordered to sell TSB by the European Commission following its £20bn taxpayer bailout, priced the offer at 260p a share – the middle of its revised range – yesterday morning and increased the number of shares on sale from 25 per cent of TSB to 35 per cent. A further 3.5 per cent “overallotment” was also exercised, taking the total stake sold to 38.5 per cent.

TSB shares rose 30p to 290p, which means that private investors who applied for £2,000 worth of shares were £231 better off. Investors in this bracket had their application satisfied in full.

The offer could have been sold 10 times over, with 60,000 applications from private investors, who will end up with  30 per cent of the shares on offer. Those who hang on to the shares for 12 months will receive a free bonus share of one for every 20 held. However, anyone who applied for more than £2,000 of shares had their applications scaled back, with those seeking £10,000 worth getting just over £4,300.

Antonio Horta-Osorio, the chief executive of Lloyds, said: “The significant investor demand for shares in TSB, which reflects investors’ confidence in the prospects for the business, has meant that we have been able to set the offer size at 35 per cent. TSB has a national network of branches, a strong capital base, robust liquidity and significant economic protection against legacy issues.”

Mr Horta-Osorio, his finance director George Culmer, the chairman Lord Blackwell and deputy chairman Anita Frew met senior management and advisers on Thursday night to set the price and size of the offer. Their feeling was that with strong late demand for shares, they should take as much as they could immediately.

Even though the bank is unlikely to pay any dividends until 2018, demand for TSB shares rose sharply in the last few days before the float, driven partly by increasingly hawkish statements from the Bank of England on future interest rate rises. 

Paul Pester, TSB’s chief executive, said: “I am delighted with the level of investor demand for TSB’s shares. It shows there is real appetite for a different kind of bank – a high street bank, not a Wall Street bank – which is focused on customer service. We are now focused on bringing more competition to high street banking across Britain.”

Lloyds will be left with  61.5 per cent of TSB, which could probably be sold by the December 2015 deadline in two tranches.

The success of the TSB sale is also good for the Government, which plans to sell the bulk of its remaining 25 per cent stake in Lloyds in the autumn – including, for the first time, an offer to retail investors.

Not everyone’s happy: Debut disappointment

Euronext suffered a soggy start to life as a listed company as shares fell 2 per cent on the financial market operator’s debut. The float of the European exchange was priced at €20 by its parent company Intercontinental Exchange, but it ended its first day trading at €19.60. Meanwhile, in London, the intellectual property specialist Allied Minds ended its first day trading flat at 190p. The Boston-based firm, founded by British financier Mark Pritchard, backs businesses spun out of US universities and government departments, including the  US Department of Defence.


Actress sees off speculation about her appearance in an amazing way

Arts and Entertainment
Serge Pizzorno of Kasabian and Noel Fielding backstage at the Teenage Cancer Trust concerts
musicKasabian and Noel Fielding attack 'boring' musicians
Arts and Entertainment
Julianne Moore and Ellen Page are starring together in civil rights drama Freeheld
'Irritatingly Disneyfied': fashion vlogger Zoella
voicesVicky Chandler: Zoella shows us that feminism can come in all forms
ebooksAn unforgettable anthology of contemporary reportage

nflAtlanta Falcons can't count and don't know what the UK looks like
Arts and Entertainment
High notes, flat performance: Jake Bugg

Review: Despite an uphill climb to see Jake Bugg in action, his performance is notably flat

The Putin automaton will go on sale next month in Germany
videoMusical Putin toy showing him annexing Crimea could sell for millions
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

IT Systems Business Analyst - Watford - £28k + bonus + benefits

£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...

Trainee Recruitment Consultant Birmingham

£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...

Trainee Recruitment Consultants

£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...

Day In a Page

Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
Ed Sheeran hits back after being labelled too boring to headline festivals

'You need me, I don’t need you'

Ed Sheeran hits back after being labelled too boring to headline festivals
How to Get Away with Murder: Shonda Rhimes reinvents the legal drama

How to Get Away with Murder

Shonda Rhimes reinvents the legal drama
A cup of tea is every worker's right

Hard to swallow

Three hospitals in Leicester have banned their staff from drinking tea and coffee in public areas. Christopher Hirst explains why he thinks that a cuppa is every worker's right
Which animals are nearly extinct?

Which animals are nearly extinct?

Conservationists in Kenya are in mourning after the death of a white northern rhino, which has left the species with a single male. These are the other species on the brink
12 best children's shoes

Perfect for leaf-kicking: 12 best children's shoes

Find footwear perfect to keep kids' feet protected this autumn
Anderlecht vs Arsenal: Gunners' ray of light Aaron Ramsey shines again

Arsenal’s ray of light ready to shine again

Aaron Ramsey’s injury record has prompted a club investigation. For now, the midfielder is just happy to be fit to face Anderlecht in the Champions League
Comment: David Moyes' show of sensitivity thrown back in his face by former Manchester United manager Sir Alex Ferguson

Moyes’ show of sensitivity thrown back in his face... by Ferguson

Manchester United legend tramples on successor who resisted criticising his inheritance
Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Ranked seventh in world’s best tourist cities - not London, or Edinburgh, but Salisbury

Lonely Planet’s Best in Travel 2015

UK city beats Vienna, Paris and New York to be ranked seventh in world’s best tourist destinations - but it's not London