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- Vote of confidence as Shawbook eyes valuation of up to £2bn
Challenger bank Shawbrook has delivered a vote of confidence to the London stock market as it became the latest business to announce plans to float.
The specialist small business lender’s plans for an IPO – previously delayed after market turmoil earlier this year – could reportedly see it valued at up to £2billion.
Finance chief Dylan Minto said London remains a ‘very attractive’ venue for raising capital – in the latest boost for the City after a dismal spell for initial public offerings (IPOs).
It comes after Cheshire-based Beauty Tech – whose products are favoured by the likes of Kim Kardashian and Serena Williams – made its London debut last week. And food firm Princes, maker of Bransons baked beans and Napolina olive oil, also said it plans for an IPO.
Minto said: ‘The London market is and remains very attractive. It provides companies with deep pools of global capital.
‘It’s also positive to see steps being taken to ensure the UK does remain competitive and a competitive place for businesses to raise capital.’
IPO rebound: Shawbrook follows Princes with listing plans after Beauty Tech’s debut last week
The latter comments come after it emerged that the Chancellor is considering a stamp duty holiday for newly-listed UK shares – though some argue that the government must scrap the 0.5 per cent tax on UK share trades altogether.
Shawbrook said its flotation would help fund growth and help boost its profile in Britain as well as allowing its private equity backers, BC Partners and Pollen Street, to cash in some of their stake.
The listing would mark a return to the public markets for the company after it was taken over by the firms in 2017.
Shawbrook, which recently reported half-year profits of £163million, up from £127million a year earlier, has been snapping up other firms, most recently acquiring fintech lender ThinCats. Since 2013, Shawbrook has made loans totalling £37billion.
Chief executive Marcelino Castrillo said: ‘An IPO would be an important milestone in our journey.’
Shawbrook’s plans for a float, added to the recent moves from Beauty Tech and Princes, will help to allay fears for the future of the London market.
Those fears were stoked last week when pharmaceuticals giant AstraZeneca announced that it was going to list its shares directly on Wall Street.
A dearth of new listings to replace those leaving has triggered worries that London is on the verge of losing its status as a global centre for equities.
Recent figures suggested the City had fallen below Mexico and Singapore in the world rankings for IPO fundraising this year.
And analysis by broker AJ Bell has identified ten London-listed firms that do so much business, or have so many shareholders there, that they may be tempted to make the switch to New York.
The businesses, with a combined value of £620billion, include household names such as Astra, Shell, BP and Rio Tinto.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .