Discussion takes place among Shawbrook investors regarding a potential £2 billion IPO, amid concerns over bank taxes
Shawbrook Group, a business-focused lender that provides loans for various purposes such as home improvement projects, weddings, business, and real estate lending, is reportedly considering an Initial Public Offering (IPO). This potential move comes amidst growing speculation and some delays in the process.
The IPO discussions are being facilitated by Shawbrook's advisers, with pilot fishing meetings being held to pre-market the IPO, testing investor sentiment towards a potential deal without the formal launch of a process. The potential flotation was initially planned for the first half of 2025, but has been pushed back to the second half of 2025 or even 2026, according to the new timetable.
BC Partners and Pollen Street Capital, the current owners and advisers of Shawbrook, own equal stakes in the company. It is worth noting that these two entities also hold a minority stake in Shawbrook's management team.
The IPO talks are being held with prospective investors, including institutional investors who have been approached in a series of pilot-fishing meetings to test market interest. However, neither Shawbrook nor Pollen Street has commented on the recent developments.
Shawbrook, which was founded in 2011 as a specialist savings and lending institution, currently employs close to 1,600 people and boasts over 500,000 customers. The company's CEO is Marcelino Castrillo.
The delay in the IPO could be due to the later-than-expected timing of Rachel Reeves's Budget. Additionally, there is speculation about potential banking tax hikes in the November Budget, which could impact the IPO plans.
Interestingly, Shawbrook has explored a string of sizeable corporate transactions in recent years, including potential mergers with or takeovers of Metro Bank, Starling Bank, and the Co-operative Bank. However, the focus now seems to be on the IPO.
On a separate note, a Money blog titled 'Britain's best and worst cities to live in ranked' has been making waves recently. The Treasury, however, has declined to comment on growing speculation that the chancellor will look to the UK banking sector to fill part of a substantial fiscal black hole.
As the IPO plans progress, more details are expected to emerge, providing further insight into Shawbrook's future direction and the state of the UK's banking sector.
Read also:
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- Hydrogen Energy: Sustainable Innovation or Resource Exploitation?
