Shawbrook’s IPO price puts value at £725m

Shawbrook Bank has priced its initial public offering at 290 pence per share, valuing the bank at £725m.

The offer will raise £90m through the sale of 75 million shares.

Shawbrook is a specialist savings and lending bank offering buy-to-let, bridging and commercial loans with all lending arranged through brokers. It was founded in 2011 by David Johnson when it rebranded from Whiteaway Laidlaw Bank.

Shawbrook chief executive Richard Pyman says: “We are delighted that our IPO has been successfully received by investors.

“Our focus remains on providing customers with a fresh, pragmatic approach to lending and savings while driving further growth by maximising opportunities in existing markets, capitalising on the embedded growth in our current loan book and developing a range of products to facilitate expansion into adjacent segments.”

The move comes after Virgin Money launched on the LSE in November. Meanwhile, Aldermore Bank was valued at £651m in its IPO last month, after postponing its launch in October following a period of declining global equity markets.