Clydesdale Bank announces IPO range

National Australia Bank expected its UK unit, Clydesdale Bank, to fetch a valuation of between 175p to 235p per share when it floated on the London market in early February.

In mid-December the lender announced its intention to sell 25% of the bank to institutional shareholders through an initial public offering, with the remainder to be de-merged to its shareholders.

Both the de-merger and the IPO were expected to complete at the start of next month, but the former was not dependent on the latter, Clydesdale said in a statement.

The valuation range for the shares announced by Clydesdale implied a total valuation for its shareholder’s equity of between £1.54bn and £2.07bn.

Among the bank’s key strengths, Clydesdale highlighted its “differentiated” proposition relative to the UK challengers.

On 15 January, Clydesdale said growth in the bank’s loan book maintained its momentum, expanding at a 6.6% clip over the three months to 31 December, while its net interest margin for the period was stable and in line with guidance at an annualised 2.2%.

According to the BBC, the lender indicated it might choose not to proceed with the flotation or to carry out a smaller one.