Lloyds Share News (LLOY)

Lloyds Banking Group is reportedly looking to sell a bigger stake in TSB than previously expected when the high street banking arm floats on the stock market on Friday.Lloyds, which is disposing of the 631 branches that form TSB as a condition of its state bailout in 2009, said earlier this month that it would offer 125m shares in the initial public offering (IPO), representing a 25% stake.However, according to various media reports, the bank is now thinking about raising the amount that it intends to offload after strong demand from investors.The offer range was set on June 9th at between 220p and 290p, valuing TSB at £1.1bn to £1.5bn. Reuters this week cited sources as saying that the range was narrowed to between 250p and 270p. This range was "well-oversubscribed" and valued TSB at a minimum of £1.3bn.Meanwhile, other rumours suggest that Lloyds could sell up to 35%, or 175m shares, in an attempt to tap into this demand.Investor appetite for the IPO has allegedly increased since Bank of England Governor Mark Carney last week signalled that interest rates could rise sooner than expected. It is thought that TSB's £17.7bn mortgage portfolio will benefit from higher rates.While the bank will still likely take a hit on the sale - having recently valued TSB at £1.55bn in its accounts - the sell-off of a bigger stake may come as a relief to investors following the botched disposal to the Co-operating Bank that fell through last year.Lloyds must get rid of its remaining shares in TSB by the end of 2015.Lloyds' shares were down 0.2% at 77.54p by 14:15.BC