Flowers Raises 134 Million Pounds in OneSavings Bank IPO

J.C. Flowers & Co., Christopher Flowers’s leveraged-buyout firm, raised 134 million pounds ($224 million) in an initial public offering of British lender OneSavings Bank Plc.

OneSavings, which focuses on lending to landlords and small businesses, sold 79 million shares for 170 pence apiece, the bottom of the range used to canvass investor interest in the stock, according to a statement today. The bank will receive 41.5 million pounds in proceeds, according to the statement, while Flowers will get 93 million pounds. Flowers may raise 20 million pounds more if the over-allotment option is exercised in full, the company said.

The lender, which owns the Kent Reliance Building Society, was one of several banks seeking to raise funds through an IPO. TSB Group Plc, a unit of Lloyds Banking Group Plc (LLOY), announced plans to sell shares last week. Aldermore Bank Plc and Virgin Money are also considering stock offerings.

“I like the fact we are the first,” said Andy Golding, chief executive officer of OneSavings. “There are a number of banking businesses coming to market, but we all have our different features.”

‘IPO Fatigue’

Shares in OneSavings rose by 4 percent to 177.5 pence at 11 a.m. in London, giving the Chatham, England-based company a market value of 431 million pounds.

Investor interest in IPOs has cooled in recent weeks, leading many deals to be priced at the lower end of guidance given to investors. Saga Plc sold shares at the bottom end of its price range, while Fat Face Group Ltd. pulled its IPO. OneSavings had offered the shares to investors for 170 pence to 225 pence apiece.

“There is a bit of IPO fatigue,” said Golding. “We could’ve pushed north to the higher end of the range, but what we wanted was a good clean IPO.”

Barclays Plc, Canaccord Genuity Ltd. and RBC Europe Ltd. ran OneSavings Bank’s IPO, along with Macquarie Capital (Europe) Ltd. NM Rothschild & Sons Ltd. advised the company and Flowers.

To contact the reporters on this story: Richard Partington in London at rpartington@bloomberg.net; Kiel Porter in London at kporter17@bloomberg.net

To contact the editors responsible for this story: Edward Evans at eevans3@bloomberg.net Steve Bailey, Keith Campbell

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