Shawbrook Group Plc climbed in its first day of trading after raising 90 million pounds ($133 million) in an initial public offering, becoming the latest British challenger bank to tap public equity markets.
The shares rose 5 percent to 304.25 pence at 9:10 a.m. in London on Wednesday, giving the bank a market value of 756 million pounds. Shawbrook said in a statement that 75 million shares, or about 30 percent of its equity, were priced at 290 pence in the IPO as managers and a fund advised by Pollen Street Capital sold some of their stakes.
“Our focus remains on providing U.K. customers with a fresh, pragmatic approach to lending and savings,” Chief Executive Officer Richard Pyman said in the statement. “We are delighted that our initial public offering has been successfully received.”
Shawbrook, whose chairman is former Royal Bank of Scotland Group Plc CEO George Mathewson, lends to small and medium-sized businesses and made 2.3 billion pounds in loans last year, according to its web site. Aldermore Group Plc, another bank seeking to challenge the dominance of the U.K.’s four big lenders, raised 226 million pounds in its March 10 IPO.
The price was near the top of the original offer range of 255 pence to 305 pence. Goldman Sachs Group Inc. and Bank of America Corp. managed the sale.
Special Opportunities Fund will remain Shawbrook’s biggest shareholder, with a 59 percent stake.