Shawbrook Commercial Bank plans IPO
British commercial bank Shawbrook is planning an IPO on the London Stock Exchange. The company has announced that it is preparing for an initial public offering. It plans to float £2 billion worth of shares. The listing is likely to take place in the first half of 2025.
BC Partners and Pollen Street Capital, which acquired Shawbrook in 2017, own the company. The managers have appointed Goldman Sachs to prepare the current IPO, and Barclays may also participate.
Shawbrook’s listing could be a significant event for the London Stock Exchange. After the flotation, the company will be one of the largest issuers to trade on the platform. The LSE is actively seeking to attract new issuers as it tries to regain its position following the decline in market activity. In addition, a number of troubled offerings have had a negative impact on the exchange’s reputation. Following Brexit, the London Stock Exchange faced a shortage of liquidity. This has led a number of companies to choose other markets to list their shares. A recent example is the listing of Ashtead, an equipment rental company, on the New York Stock Exchange. 
About the company
Shawbrook was established in 2011 as a savings and loan institution focused on providing loans for the following purposes:
– home improvement and renovation;
– organising weddings and other celebrations;
– lending to small and medium-sized businesses;
– loans for the property purchase.
Today, Shawbrook has more than 1,600 employees and serves approximately 550,000 customers. It is classified as a mid-tier lender. Its main competitors include OneSavings, Aldermore, and Paragon Banks. This segment of lenders plays a key role in the functioning of the UK banking system and significantly impacts the country’s financial landscape, particularly in the post-crisis context.
It is worth noting that this is not the first time that Shawbrook has considered an IPO. In 2023, the owners announced the possibility of selling or listing the company. They then invited advisers from Bank of America and Morgan Stanley to study the issue. Such an intention was also expressed in 2022, but the market situation at that time was unstable.
In 2023, Shawbrook proposed a merger with Metro Bank. The latter was experiencing financial difficulties and was considering options to preserve the business. However, the deal with Metro Bank did not go through.
According to the results for the third quarter of 2024, Shawbrook increased its loan book by 18%, or £15 billion, in cash terms. The bank also intends to expand in key markets such as property and SME services. The company said that macroeconomic stability would help boost its customer base.
