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.

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  • vikramnjnjjdjnd
    , contributor
    Comments (1444) | Send Message
    San and nbg are a better speculation play.
    9 Jun 2014, 02:02 PM Reply Like
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