Shawbrook priced its shares at 370p, the mid-range of its initial offer, valuing the specialist lender at around £1.92bn, making it London’s biggest flotation this year.
Its stock began trading this morning on the London market, after selling 13.5 million new shares to investors, raising £50m in gross proceeds, representing 18.1% of the business.
The move makes it the biggest IPO on the London market in 2025, with shares lifting by as much as 7.8% from the IPO price to 399p in early morning trading.
The lender had priced its stock between 350p and 390p earlier this month.
The bank is backed by private equity firms BC Partners and Pollen Street Capital, these groups are expected to raise around £298m from the deal, according to its prospectus.
Retail mortgages are largely run through its Bluestone Mortgages and The Mortgage Lender brands, which merged sales teams in April.
The lender 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.
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.
Shawbrook chief executive Marcelino Castrillo (centre) says: “The strong support we have received from investors across the UK, Europe and the US, reflects the strength of Shawbrook’s proposition and the business we have built. “We are proud to be listing in London — our home market — a milestone that positions us well for the opportunities ahead.
Castrillo adds: “We have built scale across diverse, attractive markets and, following significant investment under private ownership, are well placed to keep growing as we support UK businesses and households.
“As a listed company, we will continue to invest in our platform and people, deepen our presence in chosen markets and expand selectively where we see attractive demand.”
The bank had reportedly attempted to float earlier this year, only for its plans to be shelved following market turmoil in April 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.
