Shawbrook is preparing for a London IPO in the second half of the year, providing a much-needed lift to the capital's public markets. The business lender is moving forward with plans that aim for a valuation of up to £2bn, as reported by the Financial Times.
The company's private equity owners had been looking for an exit, but market volatility had previously discouraged plans for a London listing. The lender is owned by private equity firms BC Partners and Pollen Street Capital, all of whom declined to comment, as reported by .
These reports will spark optimism for a resurgence of London's somewhat stagnant stock market. Several billion-pound London banking and fintech businesses, from Zilch to Zopa, are contemplating an IPO but have been waiting for favourable market conditions to emerge.
Shawbrook has explored several mergers in the past
Earlier this year, Shawbrook was considering a £5bn merger with fintech giant Starling, after market volatility made a public listing less appealing.
The mid-cap lender approached Starling to begin discussions on a potential deal, as reported by Sky News. This potential partnership is one of several that Shawbrook has explored in recent years.
In 2023, the lender considered a potential merger with Metro Bank when the latter was facing a critical financial crisis. That same year, the bank planned a £3.5bn merger with Co-operative Bank, which instead finalised its sale to Coventry Building Society at the start of 2025.
Shawbrook Bank reported a dip in profit before tax to £294m for the financial year 2024, down from £302m in the previous year.
However, the firm managed to bolster its deposit and loan book, propelled by both commercial and retail markets.
The bank's loan book saw a significant growth of 16 per cent, reaching £15.2bn in 2024, up from the £13.3bn recorded in 2023.
Marcelino Castrilo, Shawbrook's chief executive, commented: "In 2024, we continued to invest in technology, talent and our proven specialist proposition."
Castrilo further added that their commitment to their strategy, coupled with their ability to execute swiftly and at scale, provided them with the platform to continue growing their business throughout the year and carry that momentum into 2025.
