Lloyds: TSB IPO Set At 260 Pence Per Share; Offer Size Increased

(RTTNews) - Lloyds Banking Group Plc. (LLOY.L, LYG) Friday said the initial public offering of TSB Banking Group Plc. has been set at 260 pence per ordinary share, giving TSB a market capitalization of about 1.3 billion pounds.

It was on June 9 that Lloyds set the price range for the IPO at 220 pence to 290 pence per ordinary share.

The offering size was meant to represent 25 percent of TSB's ordinary shares in issue, totaling 125 million shares, prior to any exercise of 10 percent over-allotment option.

Lloyds said today that due to high investor demand, the offer size was set above the expected size of 25 percent.

António Horta-Osório, Group Chief Executive of Lloyds Banking, said, ''The significant investor demand for shares in TSB, which reflects investors' confidence in the prospects for the business, has meant that we have been able to set the offer size at 35%.''

The offer comprises 175 million existing TSB ordinary shares being sold by Lloyds, representing 35 percent of the 500 million TSB ordinary shares that will be in issue at admission.

Around 30 percent of the offer has been allocated to retail investors and gross proceeds realized by Lloyds will be 455 million pounds.

Following admission, Lloyds will hold, through Lloyds Bank Plc, 65 percent of TSB's ordinary shares, subject to a 90-day lock-up agreement from the date of admission. TSB operates as a separate division within Lloyds.

Admission and the commencement of unconditional dealings in TSB shares are expected to take place at 8 am on June 25 under the ticker TSB.

TSB has a customer base of 4.5 million retail customers, a comprehensive range of retail banking products and a multi-channel, national distribution model, including 631 branches, which equates to around 6 percent of the retail bank branches in the UK.

Lloyds was required by the European Commission to sell the 631 branches that it re-branded as TSB as a condition for receiving a government bailout of 20 billion pounds during the 2008 financial crisis.

LLOY.L is up 0.1 percent in early morning trade at 77.48 pence.