- Shawbrook Bank is exploring the plan to go for a £1bn London listing.
- The challenger bank got listed on the LSE in 2015 and was taken private in an over £800m deal two years later.
UK-based retail and commercial bank, Shawbrook, is exploring the plan to go for a £1bn London listing. The bank was taken private around five years ago, and it may return to the stock market in the near future, according to recent reports.
Shawbrook’s plan to re-enter the LSE
Shawbrook, which is among the largest challenger banks in the UK, is planning to get listed on the London Stock Exchange again after it was taken private less than five years ago. With a valuation of £725m, Shawbrook got listed on the LSE in 2015, and two years later, it was taken private in over £800m deal.
The bank is owned equally by BC Partners and Pollen Street Capital. The two private equity firms, each owning 50% of the bank, have been holding discussions with investment banks regarding the potential Shawbrook IPO, as reported by Sky News. The profits of the bank have doubled ever since the two firms have invested in it.
The talks about the IPO are currently at an early stage and could lead to the existing shareholders deciding to retain their control for a longer period or even result in a sale to another bank or financial investor. Be it a sale or a flotation in 2022; the bank could be worth more than £1bn as per sources.
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Shawbrook was launched after the global financial crisis had hit the world in 2008, and the major high street banks were facing a credibility crisis. Established in 2011, the aim of the bank was to provide a variety of saving and lending products to the UK small and medium-sized businesses (SMEs) as well as individuals. Its target markets include business finance, property finance, and personal loans. In the past few years, the challenger bank has been heavily investing in systems to create a robust technology platform for serving its clients.
According to the trading update released on Shawbrook’s website for the third quarter of 2021, the loan origination and distribution of the bank has been consistently improving, and its annual loan growth rate stood at 24.3%, raising its total lending from £7.1 billion as of 31 December 2020 to £8.4 billion as of 30 September 2021.
Even though Shawbrook bank is moderately sized, it is still a crucial player in the UK’s corporate lending sector. The potential listing of the specialist bank may help it challenge the mainstream banks while serving the needs of its customers and the wider community.