3rd Feb 2016 07:54
LONDON (Alliance News) - The delayed initial public offering of CYBG PLC, the owner of the Clydesdale and Yorkshire retail banking brands in the UK, was priced at the lower end of the expected range Wednesday amid volatility in financial markets, valuing the lender at GBP1.58 billion.
At 180.0 pence per share, the IPO price was towards the bottom of the guided range of between 175.0p and 235p per share.
"This is truly a landmark day for CYBG as we move towards becoming an independent banking group for the first time in almost a century and we are delighted to be listing on both the London Stock Exchange and the Australian Securities Exchange," CYBG Chief Executive David Duffy said in a statement.
The IPO comprises an offer of 219.8 million shares in CYBG by National Australia Bank, equivalent to a 25% stake in the lender, including 28.7 million shares available under an over-allotment option. At the same time, a demerger of National Australia Bank's remaining 75% stake in CYBG is being effected through a distribution of shares to the parent's own shareholders.
No new money is being raised by CYBG.
Conditional trading of CYBG shares is due to begin Wednesday on the London Stock Exchange's Main Market, with unconditional trading set for Monday next week.
"We are pleased with the response from institutional investors to the IPO, including from NAB shareholders, despite the recent significant market volatility," NAB Group Chief Executive Officer Andrew Thorburn said.
The IPO had to be delayed by 24 hours on Tuesday as a result of a request for information from a ratings agency.
By Samuel Agini; [email protected]; @samuelagini
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