British lender Shawbrook has announced plans to list its shares on the London Stock Exchange. The move represents one of the more substantial initial public offerings (IPOs) the city has seen in recent years, and it marks a return to public ownership for the bank, which was acquired by private equity firms BC Partners and Pollen Street through Marlin Bidco in 2017.
According to Shawbrook, the offering aims to raise capital to support expansion and strengthen its market position in the UK. It would also allow Marlin Bidco, which is the holding vehicle controlled by the two private equity groups, to reduce part of its ownership. The bank stated that shares would be offered to both institutional and retail investors, targeting a minimum free float of 10%.
Return to public markets in the context of renewed IPO activity
A potential valuation of up to GBP 2 billion has been suggested, according to reports last week cited by Reuters. If confirmed, the listing could represent one of the largest in London’s recent history and contribute to the city’s gradual revival as an IPO venue following a prolonged slowdown in activity.
Representatives from Shawbrook described the planned flotation as a significant step in the bank’s development, noting that the institution has expanded considerably since its last period as a public company. They added that current market conditions offer opportunities to reach a wider customer base and build on its existing lending portfolio.
According to Reuters, the IPO comes as London experiences a modest resurgence in listings, with companies such as Beauty Tech Group and Princes announcing plans to go public. Despite this, some major UK-based firms, including fintech company Wise, have opted to list abroad in search of higher valuations, prompting regulators to reform listing rules to make London’s capital markets more competitive.
