Seeking Alpha

Lloyds prices TSB IPO below book value

  • As expected, the pricing for Lloyds' (LYG) TSB offering comes in below book, with the midpoint of the IPO range valuing the business at $2.1B, or 0.8x book value. In comparison, Lloyds itself is currently trading at 1.3x book value.
  • TSB's loan book - mostly comprising mortgages from the Cheltenham & Gloucester building society where the rate is capped at 2% over the base rate vs. the market average of 3.9% - is likely behind the discount.
  • TSB has 4.5M customers and 6% of the U.K.'s bank branches, making it Britain's 7th-largest retail bank.
Comments (1)
  • vikramnjnjjdjnd
    , contributor
    Comments (282) | Send Message
     
    San and nbg are a better speculation play.
    9 Jun, 02:02 PM Reply Like
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