LLOYDS’ spin-off TSB bank has drawn up the first drafts of its prospectus to investors ahead of its initial public offering, as it prepares to float on the stock market next year.
The lender was established as a standalone entity in September and says it has benefitted from the seven day switching scheme which allows customers to move current accounts with all their direct debits transferred in seven working days.
The bank was previously expected to be sold to the Co-op Bank, giving the mutually-owned bank another 632 branches.
But the deal fell through, leaving Lloyds to float it on the stock market instead.
The sale was forced on Lloyds by the European Commission as part of the authorities’ approval of the 2008 bailout, in an effort to bring more competition to the high street banking market.
It comes as the new bank’s chief executive Paul Pester told the Sunday Telegraph he will start roadshows in the early months of next year.
“I’ll be out on a roadshow talking to potential investors, explaining to them our local banking model, our clean balance sheet, the fact that we have none of the hangovers of the past, and explaining why this is a unique investment opportunity,” he said in the interview.
“It’s the only bank share that you can buy that has just exposure to UK retail banking and nothing else.”