UK’s first bank IPO in a decade – OneSavings Bank comes to market

OneSavings Bank, the lender built by private equity firm JC Flowers, is to float on the stock market at a valuation of up to £600m.

 

It was created out of the Kent Reliance Building Society which JC Flowers rescued in a recapitalisation deal in 2010.

 

It plans to sell off a stake of at least 30 per cent, targeting institutional investors.

 

The last time a new bank listed on the main exchange was 2001, and OneSavings has pipped TSB to the post – the Lloyds spin-off want to float by the end of next month.

 

Arbuthnot-owned Secure Trust Bank has listed in the intervening years, but used the Alternative Investment Market (AIM).

 

The KRBC brand is still its main vehicle for bringing in customer deposits, but the 150-year old name has been merged with other specialist lenders as part of a radical restructuring to prepare the initial public offering (IPO).

 

For instance the bank snapped up a small commercial lender called Interbay, and this year set up its Heritable Development brand to lend to residential developers.

 

“2013 was the first year of demonstrating a return on equity and strong growth, so it was a natural point to consider a flotation,” chief executive Andy Golding told City A.M.

 

“We are a specialist lender and we play in niche markets where there are gaps that the larger lenders are leaving behind – there is plenty of room for growth.”