Shawbrook Bank has unveiled its intentions for a stock market flotation, marking the latest surge in London's IPO activity.
The Essex-based bank has today issued its registration document, signalling its intention to list its shares on the main market of the London Stock Exchange, a move that could potentially value the company at up to £2bn, as reported by .
Previously listed in London, Shawbrook was acquired by a consortium led by private equity firms BC Partners and Pollen Street Capital in July 2017.
The bank anticipates a free float of at least 10 per cent of its issued share capital and aims to qualify for inclusion in the FTSE º£½ÇÊÓƵ indices.
Goldman Sachs, Barclays and Deutsche Bank have been enlisted as joint bookrunners.
In a statement, the bank said: "Shawbrook believes that an IPO would, if completed, position the Group well for the next stage of its evolution, supporting its ambitious growth plans,".
It added that an IPO is expected to boost Shawbrook's profile and brand recognition, help retain and incentivise key management and employees, and provide access to a broader range of potential capital sources.
The bank also noted that the flotation would enable its existing sole shareholders to realise part of their investment in Shawbrook, "after many years of success and investment under private ownership."
Shawbrook has stated its medium-term goal is to achieve loan book growth in the low double digits per year, with an ambition to nearly double the size of its total loan book to £30bn by 2030.
The bank has also followed an aggressive M&A strategy in recent years, which saw failed attempts to acquire Metro Bank and Co-op Bank in 2023. The company successfully acquired specialist lender Bluestone Mortgages in the same year.
The plans for flotation indicate the latest sign of a revival in London's previously sluggish IPO market, which saw the stock exchange fall to as low as 23rd globally by funds raised by the end of the third quarter.
However, chief executive Marcelino Castrillo said that "now is the right time" for an IPO, insisting that it was "definitely not a decision we're rushing into" and adding that raising cash would enhance the firm's M&A war chest.
"We have found the London Stock Exchange has deep capital pools. We believe we have a very strong business so we think now is the right time to float," he said.
"We have completed 34 M&A transactions in our history so I think we have been very successful in doing that in a very disciplined way.
"IPOing will give us more access to capital for growth which will include the very disciplined M&A we have done in the past."
This comes on the heels of successful listings last week by Texas-based energy developer Fermi, which also went public in New York, and Cheshire-based Beauty Tech Group, which priced its IPO at 271p per share on Friday, resulting in a market valuation of approximately £300m.
