Lloyds Banking: TSB Banking's IPO Price Set At 260p/Shr - Quick Facts

(RTTNews) - British lender Lloyds Banking Group plc (LYG, LLOY.L) announced the pricing of the initial public offering or IPO of TSB Banking Group plc.

The offer price was set at 260 pence per TSB Ordinary Share. TSB's market capitalization is around 1.3 billion pounds, based on the offer price. Owing to significant investor demand for TSB Ordinary Shares, the offer size has been set above the expected offer size of 25%.

The offer includes 175 million existing TSB Ordinary Shares being sold by Lloyds, representing 35% of the 500 million TSB Ordinary Shares that would be in issue at Admission. Around 30% of the offer has been allocated to retail investors under the Intermediaries Offer. Gross proceeds realized by Lloyds would total 455 million pounds, earlier to any exercise of the over-allotment option.

Following Admission, Lloyds is expected to hold 65% of TSB's Ordinary Shares through Lloyds Bank plc, assuming no exercise of the over-allotment option; this holding would be subject to a 90-day lock-up agreement.

As stabilizing manager on behalf of the Underwriters, J.P. Morgan Cazenove has been granted an over-allotment option by Lloyds, exercisable no later than 30 days from today, over up to 17.5 million TSB Ordinary Shares, representing 10% of the offer.