LONDON (Alliance News) - Shawbrook Group PLC shares are trading up on Wednesday after the lender's initial public offering of 75 million shares was priced at 290 pence per share, giving it a market capitalisation of GBP725 million on admission to trading.
Shawbrook shares were quoted at 303 pence per share late morning Wednesday, but were trading as high as 308.75 pence earlier in the day.
The lender's market capitalisation on admission was higher than the equivalent for British retail bank Aldermore Group PLC, which was valued at GBP651 million on admission but has a current market capitalisation of about GBP796.8 million.
By market capitalisation, Shawbrook is the second-biggest IPO to hit the London Stock Exchange so far in 2015, second only to Auto Trader Group PLC's GBP2.35 billion float and just ahead of John Laing Group PLC's GBP715.5 million valuation.
Shawbrook, which focuses on lending to smaller businesses in the UK, raised about GBP90 million by listing on the Main Market of the London Stock Exchange, in a move that also allowed major shareholder and private equity firm Pollen Street Capital to sell part of its stake in the company.
The sale of the 75 million shares will leave Pollen Street Capital with a 59% stake in Shawbrook, but its holding could be further reduced if an over-allotment option is taken up that gives joint underwriter Goldman Sachs the right to embark on a further sale of up to 11.25 million shares.
Pollen Street Capital was previously known as SOF Investments, a private equity team spun out of Royal Bank of Scotland Group PLC in November 2013, until it changed its name in September 2014. The private equity fund manager specialises in investing in the financial services sector and was also behind the IPO of debt management business Arrow Global Group PLC, which listed on the Main Market of the London Stock Exchange in October 2013.
Shawbrook Chief Executive Richard Pyman said that Shawbrook will aim to become "increasingly well-known" in "the specialist world of British banking", as he welcomed investor support for the IPO.
"Our focus remains on providing UK customers with a fresh, pragmatic approach to lending and savings whilst driving further growth by maximising opportunities in existing markets, capitalising on the embedded growth in our current loan book and developing a range of products to facilitate expansion into adjacent segments," Pyman said in a statement.
Bank of America Merrill Lynch and Goldman Sachs were joint sponsors, joint global co-ordinators and joint bookrunners for the offer, with Macquarie Capital acting as a joint bookrunner and Keefe, Bruyette & Woods as co-lead manager.
Meanwhile, Sanne Group PLC, which provides outsourced corporate and fund administration, reporting and fiduciary services, saw its shares rise as high as 224.5 pence on its first morning as a listed company.
Sanne shares were trading at 222 pence late morning, above the 200 pence per share pricing of its float on the London Stock Exchange's Main Market.
Backed by private equity group Inflexion, which along with directors and managers of the business sold shares worth GBP113.6 million under the IPO, Sanne is raising GBP28.0 million by going public. About 70.8 million shares were sold in Sanne's IPO, giving the company a market capitalisation of GBP232.0 million at the 200 pence pricing of the IPO.
Inflexion Private Equity will be left with an 11.1% stake in the company, while directors and senior managers will hold a 23.6% stake.
Investec was the sole sponsor, bookrunner and broker on Sanne's IPO.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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