Clydesdale Bank gears up for next month's IPO with roadshow and expected price range this week

 
Lauren Fedor
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AUSTRALIA-NAB-BANKING
Clydesdale will be spun off from National Australia Bank (NAB) next month (Source: Getty)

Clydesdale Bank is set to reveal the price range of its London listing this week, with investors expecting shares to be offered at a discount from the bank’s book value of between £2bn and 2.5bn.

The British banking business, which is currently owned by National Australia Bank (NAB), announced its intention to float on both the London and Australian stock exchanges last month, confirming plans for a demerger and initial public offering (IPO) were on track for February.

Clydesdale includes Yorkshire and is often called CYBG Group in documents.

The demerger is set to involve selling 75 per cent of the bank's shares to NAB shareholders, and 25 per cent to institutional investors through the proposed IPO.

Clydesdale, which is kicking off an investor road show this week, is expected to reveal its indicative price range within days. Sources close to the deal said that shares were likely to be sold at a discount of around 0.7 per cent of book value.

Clydesdale said in a trading update last week that performance for the fourth quarter had been in line with expectations, reporting a 6.6 per cent growth in the bank’s loan book on an annualised basis.

A Clydesdale spokesperson declined to comment on the flotation over the weekend.

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