Shawbrook confirms London IPO

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Shawbrook has announced plans to float on the London Stock Exchange, in a move that could value the specialist lender at £2bn, which would make it the biggest initial public offering in London this year.  

The bank, founded in 2011, offers mortgages for professional landlords, property investors, and individual homeowners with more complex income and credit profiles, as well as motor finance. 

It is backed by private equity groups BC Partners and Pollen Street Capital. 

Retail mortgages are largely run through its Bluestone Mortgages and The Mortgage Lender brands, which merged sales teams in April. 

The lender says an IPO would allow it “access to a wider range of potential sources of capital,” which would “support its ambitious growth plans”. 

It states that since 2011, it has grown its loan book from around £100m to £17bn as of 30 June. 

The group has a ‘30 by 30 target’, which means that it aims to boost its loan book to around £30bn by the end of 2030. 

The bank’s commercial arm, which includes real estate and small business lending, has a loan book currently at £10.5bn, accounting for 61% of its business.   

Its retail arm, which includes its retail mortgage brands and consumer finance, has a £6.6bn loan book, amounting to 39% of its lending.   

Shawbrook chief executive Marcelino Castrillo says: “We have achieved real scale, and our current markets are large and growing, supported by attractive tailwinds.  

“We also see a significant opportunity to bring Shawbrook’s offering to new types of customers.” 

The move comes as London has struggled to attract new listings in recent years. 

Just £156m was raised from new listings on the LSE’s main and junior markets in the year to September, compared with £39bn raised by companies listing on the New York Stock Exchange and Nasdaq, according to data firm Dealogic. 

Manx Financial group chief executive Douglas says: “It’s encouraging to see the UK capital markets being used for such a landmark transaction.  

“Shawbrook’s planned flotation demonstrates that there remains strong investor appetite for well-capitalised banking stocks with long-term growth prospects.  

“This announcement comes at a pivotal time for London, which continues to face scrutiny over its competitiveness and deal pipeline.” 

Elliot Reader, a director in the Houlihan Lokey fintech group, adds: “Beyond the immediate market impact, the listing could also provide a useful valuation benchmark in the specialist banking and finance sector, which in recent years has seen far more take-private than public listing activity.  

“Overall, it represents an important signal for sponsors and investors considering the UK market as a route for exits or capital raising.” 

Shawbrook had reportedly attempted to float earlier this year, only for its plans to be shelved following spring market turmoil triggered by US President Donald Trump’s trade war.

The bank was previously listed in London, but went private after a consortium led by BC Partners and Pollen Street Capital acquired the firm in 2017 in a deal valued at £861m. 

Last month, broker network Mortgage Advice Bureau reiterated its intention, made in February, that it intends to move from the London Aim market to the FTSE 250 index in 2026.     


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