Lloyds sets TSB IPO price below book value

Lloyds will price its initial public offering of TSB at between 220p and 290p per ordinary share, with the float set for 20 June.

The IPO, which will give TSB a market cap of approximately £1.275bn, will see 125m shares allotted, equivalent to 25% of TSB’s existing ordinary shares. The price is below TSB’s net asset value of £1.6bn, according to Reuters, reflecting a cooling of the UK IPO market in recent weeks. Lloyds is required by European regulators to sell the 631 TSB branches by the end of 2015, as a condition of receiving state aid amid the financial crisis five years ago. The sale is expected to be the first of several tranches.