3rd Feb 2016 12:17
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. However, shares in the company were rose in conditional trading to 188.00p at midday.
"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.
Elsewhere, Duffy told Bloomberg in an interview that CYBG may consider joining those bidding for Royal Bank of Scotland Group PLC's Williams & Glyn business. Duffy said the bank would look at the auction in a "purely agnostic context" and said he would only enter the bidding once CYBG had determined what it would be buying.
RBS announced it would sound out potential buyers for Williams & Glyn in January after it received a number of approaches for the business as it prepared it for an IPO. RBS has to spin-off Williams & Glyn, which comprises about 300 branches in the UK, by the end of 2017 in order to meet European Union state-aid rules related to its bailout by the UK government.
The CYGB IPO comprised 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.
"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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Related Shares:
RBS.LCYBG