That’ll see the bank valued at £1.275bn, at the mid-point, when it floats on the stock market at the end of this month.
The initial public offering will see 125m ordinary shares sold - 25 per cent of TSB’s existing issue.
Advisors were pushing for a price around 10 per cent lower than the bank’s £1.5bn to £1.6bn book valuation, in order to try to reassure cautious investors.
The hope is that share will bring in more money with each subsequent sale.
The sale’s expected to be complete by the end of next year, with at least two further tranches of stock offerings expected.
The final price will be unveiled on 20 June - and conditional dealings are expected to start the same day.