British bank Shawbrook has announced plans to list its shares on the London Stock Exchange, marking a significant move for the institution. This IPO represents one of the larger offerings seen in the city recently and indicates a return to public ownership, following the bank’s acquisition by private equity firms BC Partners and Pollen Street through Marlin Bidco in 2017.

Shawbrook stated that the offering aims to raise capital for expansion and strengthen its market position within the UK. Additionally, it will enable Marlin Bidco, controlled by the two private equity groups, to reduce some of its ownership stake. The bank plans to offer shares to both institutional and retail investors with a goal of achieving a minimum free float of 10%.

Return to Public Markets Amid Renewed IPO Activity

A valuation up to GBP 2 billion has been suggested, according to reports cited by Reuters. If confirmed, this could mark one of the largest IPOs in London’s recent history and contribute significantly to the city’s revival as an IPO venue after a period of reduced activity.

Shawbrook representatives view the planned flotation as a key development for the bank. Since its previous stint as a public company, Shawbrook has seen substantial growth. They believe that current market conditions provide opportunities to reach a broader customer base and build on its existing lending portfolio.

According to Reuters, this IPO comes at a time when London is experiencing a modest resurgence in listings, with other companies like Beauty Tech Group and Princes also planning their public debuts. However, some major UK-based firms have chosen to list abroad, seeking higher valuations, which has prompted regulatory changes aimed at making London’s capital markets more competitive.