OneSavings Bank set to float as demand comes in at lower price

 
David Hellier
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ONESAVINGS Bank, the group created in 2010 when the Kent Reliance Building Society was rescued by a £50m cash injection from private equity group JC Flowers, is set to press ahead with its flotation after getting sufficient demand from investors at the lower end of its price range.

Shares will be priced at 170p, right at the bottom of its range, valuing the group at around £413m. OneSavings is raising around £40m to help it increase its tier 1 capital.

The flotation is being led by Barclays, with Canaccord Genuity, RBC Europe, Macquarie and Rothschild all acting on the deal.

OneSavings is the first of a group of new retail banks due to float on the stock market this year, such as Royal Bank of Scotland’s Williams & Glyn’s and Lloyds Banking Group’s TSB.

Although JC Flowers, which holds the largest stake (set to remain around 30-35 per cent), may be disappointed not to get a higher price for the group’s shares, there will be some relief at the issue going ahead after the recent pulling of Fat Face’s IPO.

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