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
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio: