Wednesday 1 April 2015 3:07 am

Challenger bank Shawbrook prices shares at top of range on IPO

Challenger bank Shawbrook may be late to the IPO party, but that hasn't prevented it from getting its flotation off to a running start, after it priced shares at 290p each, near the top of its range of 255p-305p on its first day of conditional trading.

The pricing valued the bank at £725m, raising £90m for the 25 per cent stake it floated.

Investor appetite for challenger banks seems to be strong: Shawbrook covered its book on the IPO at record speed.

The listing comes in the same month rival Aldermore listed, with shares closing 12 per cent higher on their first day of trading and have since risen 21 per cent to 233p.

Richard Pyman, Shawbrook's chief executive, said the bank "looks forward to the next stage of our journey".

Our focus remains on providing UK customers with a fresh, pragmatic approach to lending and savings whilst driving further growth by maximising opportunities in existing markets, capitalising on the embedded growth in our current loan book and developing a range of products to facilitate expansion into adjacent segments.